This report, produced by a task force under the aegis of the Chinese Academy of Social Sciences (CASS) and the Centre for International Governance Innovation (CIGI), assesses the impact of the global financial
crisis on China. The report suggests that China has been perceived as relatively well insulated from the crisis, but along with other tradedependent countries outside the Organisation of Economic Co-operation
and Development (OECD) its integration into the global economy means exposure to the negative effects of the economic downturn. This is evident in China’s economic performance, though the report finds that China is relatively well positioned compared to the OECD economies.

Challenges will arise from an increased integration into the global economy, a dependence on exports, uncertainty in housing prices, and a potential turn to protectionist policies. The report outlines the options for policy response by China in areas such as construction and real estate, exchange rates, regulatory change, management of financial reserves, and the approach to market-oriented development. The task force suggests that China has an interest in the emerging global financial architecture and in maintaining openness in the trading system, and predicts that a point of contention will be deciding the purpose
and objectives of those systems.