China Issues Challenge to World Community to Fix the Financial System

China Issues Challenge to World Community to Fix the Financial System

While Chinese President Xi Jinping was not present at this year's World Economic Forum in Davos, much of the focus of the event was  nevertheless very much on China. The Chinese delegation, which consisted both of Chinese officials and a large business delegation, was headed up by economist Liu He, who, while not so well known, has been the chief economic advisor to President Xi for a good number of years, but was only this year elected to the Political Bureau, the highest body of the Chinese Communist Party. It is generally understood that the major changes in China over the last five years have, to a certain extent, been due to Liu's advice. A leading economist, educated at Harvard among other institutions, he has written extensively on the 2008 crisis and its aftermath, and seems to refer mostly in his writings to economists like Joseph Schumpeter and Peter Romer. In his speech at Davos, he really issued what can only be considered the biggest challenge facing the world community, making fundamental changes in the present world financial system.

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