Since the late 70s of the last century, the Chinese government began to carry out economic reform and serious changes in the social policy of the state. In China, “socialism with Chinese specificity” began to be built, jokingly — “socialism with a Chinese (human) face”.
The basis of the new economic policy is the balanced share of the market sector in the economy along with the effective state control of the state for the main, strategically important areas of economic development.
The most important role in this direction of development of the national economy is assigned to the banking system. It is the banking system that is designed to balance the intervention of the administrative resource in the development of a free market economy.
The difficulty of banking reform and the entire economic strategy of the Chinese state for the next decades is that the Chinese go completely by their own, specifically, that is, they do not have a ready -made “working”, proven working scheme. Which significantly complicates the task of the global development of the national economy and its effective integration in the global economic process, but at the same time, Chinese society from «childhood» diseases through which many other states can be rid of the Chinese society through this path.
Of course, the construction of a new effective and socially oriented society is not built from scratch. The Chinese government is fully aware of the scale of the tasks, and at the same time widely uses historical and international experience, taking into account all the pros and cons of various social systems for building society and various models of economic development. In this case, a very specific mentality of the eastern person and, in particular, has no analogues among other European peoples, the hard work of the Chinese, in their blood, in their eastern worldview can be called as a huge plus.
The banking sector of the Republic of China is in the process of constant intensive development. At the same time, the system itself as a whole (its organizational structure, management system), which today has preserved many features of the “transition period”, especially noticeably recently began to play the role of a restraining factor on the path to building a free market society. What can be associated with a slow rate of growth in the development of the banking system in comparison with other sectors of the Chinese economy.
An important factor on the path of reforming the Chinese banking system can be the entry of China to the World Trade Organization (WTO), which will ensure the stability of the financial sector of the economy and strengthen the national monetary unit of Yuan.
It is interesting to note that “yuan” in China is called any national currency in relation to its basic unit, since literally translated from Chinese into Russian “yuan” means “round object” or “round coin”. That is, in principle, any monetary unit of any power is suitable for this name. However, in world practice, it is customary to mean precisely the monetary unit of the Chinese Republic by this term.
