In an increasingly connected global economy, size matters. That’s why every American businessperson and consumer needs to understand what’s happening in China. Recently, Deborah Hewitt, assistant dean for MBA programs and clinical professor of economics and finance at the Mason School of Business, spoke to William & Mary News about the rising tide of China’s financial resources and how that will have an impact on everyone—from the corner dry cleaners to global giants.
In the videos below, Hewitt talks about what every American business needs to know about the Chinese economy, how China’s $3 trillion reserve holdings will help it weather economic challenges and how the yuan is being positioned to compete with the U.S. dollar as the global currency.
“Every American business has to try to understand China now because it is the dominant force in both producing many products … [and] in buying on the global market … So you’re the corner cleaners you think ‘what does China have to do with me?’ Well you use chemicals. So no matter which side you are on, the growth that’s going on in China and the industries they’re moving into all become critical for you to understand.”
“Having $3 trillion worth of reserves gives you a lot of ‘staying power.’ And that, again, puts them on very much a different side of the opportunity scale than we or any European country is on because we’re in deficit.”
“China is beginning to develop [its] currency into a potential global currency … Oil is priced in dollars. So at least when the price goes up we’re still paying in dollars. But what if the price went up and it was priced in the Chinese yuan and the dollar fell 15 to 20 percent against the yuan?”