News & Analysis » China
Last week China economy review and analysis (March 24, 2010)
By Daniel Stewart
No significant data was released last week but the authorities are clearly worried about inflation, including house prices. They also seem to be using a good cop, bad cop approach to dealing with the rising chorus of criticism from US politicians on their exchange rate policy. They are probably mildly encouraged by the rows developing amongst US economists (one has suggested that a baseball bat be taken to one of his eminent critics) as to why the renminbi is undervalued: Chinese manipulation or US profligacy and a related neglect of the deficit. Meanwhile, the Obama Administration is probably quite happy about complaining senators whilst continuing to talk warmly and calmly of Sino-US relations, reflecting the reality that both sides need each other and a face-saving deal will be reached.
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