Case | HBS Case Collection | July 2010 (Revised March 2012)

China 'Unbalanced'

by Diego A. Comin and Richard H.K. Vietor

Abstract

In 2010, Wen Jiabao looked back at the financial crisis with some satisfaction. Using aggressive fiscal and monetary policy, China had weathered the crisis successfully, growing 8.7% annually in 2010. Most of the unemployed workers had returned to work, often demonstrating for higher wages or better working conditions. Wen, however, was really focused on his new development strategy—shifting away from export-led growth to ease domestic and international pressures. But many institutional challenges seemed to hamper domestic demand, and Wen was particularly concerned with pressures from America, on China's policies for trade, exchange rates, energy and investment.

Keywords: Economic Growth; Financial Crisis; Trade; Currency Exchange Rate; Investment; Local Range; Growth and Development Strategy; Demand and Consumers; China;

Citation:

Comin, Diego A., and Richard H.K. Vietor. "China 'Unbalanced'." Harvard Business School Case 711-010, July 2010. (Revised March 2012.)