Challenges in China's financial system: consequences for Germany and the world?

Topic

China’s impressive economic growth in recent decades has been largely supported by Chinese financial institutions. Particularly in recent years, China’s private and public debt has risen sharply—not just in the real estate sector. This poses challenges to the Chinese financial system and risks to financial stability in China. In this context, the International Monetary Fund also warns of the potential impact on the global economy. 
Although the direct links of German financial intermediaries with China are limited, the Bundesbank believes that the close links between Germany and China in the real economy pose significant risks to the German financial system. German banks have financed the expansion of many German companies into the Chinese market. Therefore, great receivables are outstanding from German companies, especially in industries that are heavily dependent on the Chinese economy. What risks does this dependence on China entail for Germany and how can they be prevented? What benefits are lost if we reduce our ties with China? What are the geopolitical implications of the current challenges in the Chinese financial system? 

Program

The event consists of different impulse lectures followed by a discussion.  

The Global China Conversation #29 will be held in German.

Sandra Heep

Prof. Sandra Heep is Professor of Chinese Economy and Society at Bremen University of Applied Sciences, where she also heads the China Centre. She previously worked as a consultant on the G20 project of the German Federal Ministry of Finance and as head of the "Economic Policy and Financial System" programme at the Mercator Institute for China Studies. She completed her doctorate at the University of Trier on China's role in the global financial architecture. 

Peter Bednarek  

Dr. Bednarek is a Senior Economist at the Deutsche Bundesbank in the Financial Stability Department. His work focuses on analyzing risks arising from the macroeconomic environment of the banking system. In this context, he contributes to all areas of policy analysis and policy work. On the one hand, he is involved in the preparation of the relevant meetings of the Financial Stability Committee and, on the other, he conducts policy-relevant quantitative analyses with varying degrees of complexity and time horizons. In addition to short and medium-term analyses, Dr Bednarek also works on long-term, particularly research-oriented projects. His research interests lie in the areas of financial markets and macroeconomics, monetary policy and banking with a focus on financial stability, lending and credit risk, financial crises and the transmission of financial shocks as well as real economic effects. His work has been published in renowned journals such as the Review of Financial Studies and the Journal of Banking and Finance. 

Vera Eichenauer

Dr. Vera Eichenauer is an economist at the Federal Ministry of Finance and works on geo-economic issues. She previously conducted research at the KOF Swiss Economic Institute at ETH Zurich (Switzerland). She is interested in economic policy and questions of international economic governance. She received her PhD in Economics from Heidelberg University in 2016 and her Master's degree in International Relations from Sciences Po Paris.