China and the impossible trinity

CHINA FINANCIAL - Report 07 Jan 2020 by Michael Pettis

Special points to highlight in this issue:
• Capital flight continues to be a major issue for Beijing, with the “Errors and omissions” account at an all-time high.
• The central bank wants to maintain relatively easy monetary conditions as it tries to work its way through China’s debt burden, but without seriously distorting the economy, it cannot maintain easy monetary conditions unless China receives net inflows on the current and capital accounts (i.e., its foreign currency reserves rise)
• More generally, managing the balance of payments will force Beijing into making increasingly difficult choices in 2020, including between more debt and a greater current account surplus.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.