What is Externality Cost

Since the outbreak of COVID-19, the official Brexit and the trade friction between Sino-US, anti-globalization become the focus of the world. After 40 years of reform and opening up, China's economy is facing new challenges under the new world situation. This chapter mainly focuses on how to promote China's economic growth under the background of financial globalization. Firstly, this chapter will introduce the development trend of the globalization and analyze the relation between financial globalization and economic growth. Secondly, this chapter will examine the state quo of China's financial openness and compare the change of China's de jure financial openness with the change of China's de facto financial openness. At last, this chapter will expound challenges faced by China's economy and put forward possible solutions to these challenges in terms of financial globalization.