Mr BO LI1
1Australian National University, Australia
Biography:
Bo Li is a PhD candidate at ANU. His research expertise includes China’s practices and ideas about sovereign debt management, particularly focusing on the evolving relationship between China’s overseas lending activities and the international debt architecture. Prior to his studies at ANU, Bo earned an MSc in International Political Economy (Research) from the London School of Economics. He has worked as a research assistant at the Institute of World Economics & Politics at the Chinese Academy of Social Sciences. Currently, Bo serves as a research assistant for How China Shapes the International Economic Order, led by A/Professor Amy King.
Abstract:
This research explores how evolving economic ideas shape China's approach to sovereign debt management (SDM) both domestically and globally. By identifying key features of Chinese SDM—including institutions, economic doctrines, and market structures—the study examines the underlying ideas influencing these elements. Adopting a constructivist framework, it traces the historical origins and evolution of these ideas from critical junctures, analysing how they fulfill the political requirements of China's debt-driven development strategy.
The study investigates whether China exports its domestic SDM approaches internationally or adopts distinct strategies for external debt. It delves into the functioning of China's domestic bond market, issues of hidden debt and off-balance-sheet financing, and the central government's role in local debt bailouts. Additionally, it assesses new developments like securitization, financialization, de-risking strategies, and the increasing use of RMB-denominated debt instruments. A key focus is on how China's ideas regarding SDM such as debt sustainability, debt restructuring, and liquidity support compare with global norms.
The research questions whether China's ideas are distinctive or if they emulate existing Western practices, examining their roles in justification, framing, constraint, and policy guidance. It also considers the implications of these ideas for China's reactions to the global debt order and their potential to contest or reinforce existing global norms.