Second, the financial system in China is a very diverse one. On the one hand, it seems antiquated, with an important role for large state-owned banks and (until recently) quite some restrictions, including on interest rates. On the other hand, financial
development has leap-frogged the West, primarily in payment services but increasingly also in other areas, with an important role for BigTechs; when I asked my host whether the Chinese bills I had brought from my last visit were still valid, he laughed and
said that it might be difficult to pay with cash at all. These challenges will provide new research questions to be answered primarily with micro-data.