Financial repression underpins Chinese economic system, Brad Setser notes

Financial repression underpins Chinese economic system, Brad Setser notes
Financial repression drives Chinese model

Brad Setser highlights the significance of financial repression, both external and internal, in shaping the Chinese economic model.

According to Setser, this aspect is a core component of how the system operates, suggesting it plays a key role in maintaining the structure of China's economy.

Earlier, Setser noted that China's holdings of Treasuries with U.S. custodians have dropped to an 18-year low, although some offshore assets are not captured by official data. He has also cited BIS data showing China’s state financial system approaching $6 trillion in net foreign assets. These trends mark ongoing shifts in China’s financial positioning globally.

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