Chinese economic policies will have major impact on global markets in 2011

How will Chinese economic policy affect global markets in 2011?

tete-terracotta

Ted Wong, Gottex
China’s economic policy response to its growing inflationary pressures could be the biggest question for global markets in 2011. All eyes are on the National People’s Congress (NPC), which has its annual meeting in March.

There will be no decoupling of China and the rest of the developed world.

China has many ways to flight inflation including increasing interest rates (three times since 2010), increasing the reserve requirement ratio (RRR raised five times in the fourth quarter of