Double Shock

This book offers a rational analysis of the transformation of the global economic order amid intensifying great power competition. By reassessing the United States’ hegemonic position and the strategic responses of the emerging power, it examines the institutional foundations and evolution of the U.S.-led global economic system, particularly the international monetary system. It pays special attention to the evolving dynamics and trends in U.S.-China relations in the context of “globalization fragmentation.”

Focusing on China’s strategic options in the new era, the book argues that U.S.-China competition is fundamentally a contest of reform capacity and governance effectiveness. Drawing on both the history of monetary and financial systems and contemporary U.S.-China rivalry, it advocates for China to prioritize “leveraging internal efforts” and pursue a path of “promoting opening up through reform” under new historical conditions. Financial deepening is highlighted as critical for preventing systemic decoupling, enhancing industrial and financial resilience, promoting technological innovation, and advancing the internationalization of the renminbi. These strategies are essential for China’s sustainable economic development and long-term rise.