July 2008

China has experienced a sharp rise in the inflow of so-called “hot money,” foreign capital entering the country supposedly seeking short-term profits, especially in 2008. Chinese estimates of the amount of “hot money” in China vary from $500 billion to $1.75 trillion. The influx of “hot money” is contributing to China’s already existing problems with inflation. Efforts to reduce the inflationary effects of “hot money” may accelerate the inflow, while actions to reduce the inflow of “hot money” may threaten China’s economic growth, as well as have negative consequences for the U.S. and global economy.

This report focuses on the treatment of foreign journalists by the Chinese government. In the buildup to the Beijing 2008 Olympics, the authors contend, the Chinese government has tried to force foreign journalists to avoid sensitive issues. As a condition of the International Olympic Committee (IOC) the Chinese government made a promise to respect free expression and expand media freedom for foreign journalists. However, as part of a government crackdown on widespread protests in Tibet in March 2008, foreign journalists were expelled from the region for three months. This paper contends that the Chinese government’s suppression of foreign media violates its promises to the IOC, and illustrates the need for the IOC to incorporate a human rights mechanism into its selection process.