Yet, China is well aware of the risks of a weak financial system and has since tinkered with the rules, Premier Wen Jiabao stated in 2009 that in order to avoid a repeat of the Global Financial Crisis, states needed to .
"Strengthen international cooperation in financial supervision and regulation and guard against the build-up and spread of financial risks. Financial authorities around the world should step up information sharing and the monitoring of global capital flowsWe should expand the regulation coverage of the international financial system." .
As I see it China has already begun shoring up its financial system. Diversions and solutions have been popping up across China's financial landscape to prevent what Zeiban calls a 'subprime economic sector'. Chinese banks have been able to manage the financial stress since late 2011 by instituting a myriad of debt-management tools. According to Huo Kan and Wu Hongyuran, "Their efforts are continuing. Banks have found ways to sell off bad debt and roll over loans. Meanwhile, the People's Bank of China and China Banking Regulatory Commission are testing new bad-load securitization programs.".
As Zeiban claimed in his argument that China will fall because of their financial system, he pointed to what he believes is a problem with Chinese lending. As he states it, "Loans are available for everything" (p. 305). And because of what he believes to be a credit happy system, has in turn lead Chinese citizens to build their own financial network, which is often referred to as shadow banking. Even though as I have already addressed above, China is aggressively combating these issues. While Zeiban may highlight the challenges represented by Chinas financial system, such as shadow lending, he ignores some of the opportunities that arise from their financial system (p.308). .
China's economy and financial system represent competition for the US and especially for the rest of the developing world.
