Why China survived the asian financial crisis?

Vol. 22 No. 2 (2002)

Apr-Jun / 2002
Published April 1, 2002

How to Cite

Sharma, Shalendra D. 2002. “Why China Survived the Asian Financial Crisis?”. Brazilian Journal of Political Economy 22 (2):225-52. https://doi.org/10.1590/0101-31572002-1235.

Why China survived the asian financial crisis?

Shalendra D. Sharma
Ph.D, is associate professor of political economy and director of the Master of Arts in Asia-Pacific Studies at the University of San Francisco.
Brazilian Journal of Political Economy, Vol. 22 No. 2 (2002), Apr-Jun / 2002, Pages 225-252


The Chinese economy shows a remarkable resemblance to those of pre-crisis Thailand, Indonesia, South Korea and Malaysia — especially the asset bubbles, high reliance on banking intermediation, poor prudential supervision, and fragility of the financial system. Yet, China defied the common prediction and did not succumb to the financial crisis. What explains the China ability to withstand a major region-wide financial crisis? This study addresses this complex question, besides elaborating the reform measures China must implement to immune itself from future financial crises or its contagion effects. 

JEL Classification: O53. O57.

Keywords: China East Asia financial crises