The GITIC Crackdown - Killing Cockroaches in the Kitchen

GITIC was forced to closure in 1998/99, creating concern among foreign investors, particularly Japanese and Korean. The concern was that the Chinese government would not stand behind its own store investment bank. The case is about how to read economic policy-making in a non-transparent environment.

How should GITIC�s failure be seen: Reaction to Asian financial crash Beijing wants to preserve financial independence Beijing assets central government control over provinces Beijing wants financial reform Beijing as a credible partner