Whether China's banking system should integration with the world Essay

Whether China's banking system should integration with the world - Essay Example The capital markets of china are also not accessed much by international investors for gaining profits. The lack integration of the Chinese economy with the world needs to be understood from the view point of the commercial and domestic interests of the nation individually. The priority of the Chinese economy in the past years has not been to be a part of the global economy, instead the focus has remained upon achieving growth and stability, while radically restructuring the overall economy and its sectors. The nation has directed its economic efforts towards developing adequate job opportunities and to be able to absorb layoffs. China’s labour market is quite large in size. The target of the economy has always been to provide adequate level of employment opportunities and maintain the stability of the economy. China has been successful in meeting these challenges adequately. The nation has been able to achieve economic growth of 10% annually. Market forces have been made free and to be able to promote efficiency. Privatization also had facilitated in the rapid restructuring of the economy. Integrating the Chinese economy with the world economy has therefore not been a high priority as China was able to maintain its stability. However, the maturity of the Chinese economy has however made it essential for it to participate in the global economy and sustain its growth. Moreover the Chinese economy possess as an important economic opportunity (Turner, Tan and Sadeghian, 2012). China plays a vital role in the global financial regulatory framework. The nation is a member of the G-20 Financial Services Board and the Basel committee. The Chinese banks and financial institutions have decided to implement the Basel III standards in respect of international bank capital standards from the year 2013 onwards (Lieberthal and Lieberthal, 2003). The implementation has already begun depicting efficient management of financial resources. The