Most likely there will be tighter policies introduced in the coming months, if not weeks. The questions is: what is the right approach to deal with an increasingly market-orientated policy?
It's still a fast pace and that's partly to do with the difficulty in managing this very large balance of payments surplus because part of it is spilling over into the money supply.
China's new exchange rate regime has kept the China critics quiet for a while, but I think the honeymoon period's coming to an end pretty soon.
Asia has the makings of a new economic paradigm, where it moves away from the export-led model.
This is not good; it raises concerns about the sustainability of China's growth.
The risk of protectionist pressures is rising. If there was a trade war, over the medium term both would lose.
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