Amelia Zajączkowska was awarded fourth prize of Prix Asia Centre for its essay “Financial Soft Power? Perceptions of Capital Account Liberalisation in China”.
Find the full essay via the PDF button above.
Since the launch of the Reform and Opening-up policy in 1978, China has undergone a dramatic transformation marked by spectacular economic growth. This shift has led to extensive academic and policy interest in the factors driving China’s economic influence and their consequences. Nevertheless, one crucial aspect remains relatively unexplored – the shifting nature of China’s financial system. China’s cautious yet intentional progress towards financial liberalisation, and notably opening its capital account, has not received much attention from scholars studying global perceptions of China and the country’s global positioning. The importance of China’s financial reforms is even more pertinent in the current geopolitical context characterised by revived isolationism and economic fragmentation. Therefore, this essay presents an initial analysis of how China’s developing financial services strategy, particularly its selective liberalisation of portfolio investment channels, influences global perceptions of China’s economic role. In doing so, this essay examines if and how financial policy may be strategically deployed as a form of soft power in times of a changing geopolitical environment and increasing global competition.
Essay summary:
- Financial policy through a “soft power” lens
- Capital account liberalisation
- Chinese reforms post-COVID-19
- Global perceptions of China’s capital account liberalisation
Financial Soft Power? Perceptions of Capital Account Liberalisation in China