Abstract
The real start of China's economic expansion was in 1978 under the leadership of Deng Xiaoping. In fact after many years of total socialism with few contacts with the others countries, Deng Xiaoping thought that China could take part in the new growing globalization. Many people know that Deng Xiaoping was the pioneer of Chinese development but few know how his financial program was totally new. It found a balance between protection, liberalization and regulation. We will analyze the most important reforms in two different ways, first at the Chinese scale and then on an international point of view. In a third part we will talk about strategic topics in the current situation. The fact is that for a long time all the interest rates were controlled by the Chinese government in order to control inflation and the development of the credit. As in many other sectors, banks were totally controlled and directed by the government, involving less efficiency and solidity compared to occidental banks. In fact some loans could be given only because they were for a political business. They were less concerned by the capacity of reimbursement of the borrower. For example the state owned companies had many more credits allowed, compared to private companies.
