CHINESE ECONOMY HEATS UP GLOBAL CRISIS DEBATE
AFP, January 25, 2010
DAVOS, Switzerland — Global leaders and bankers will be looking for firm signs at the Davos forum this week of China's determination to control the hot money pouring into its economy.
A year after China's Premier Wen Jiabao sternly lectured the United States and other western nations at the World Economic Forum for causing the international financial crisis, markets are now jittery over "asset bubble" warnings around his country.
AFP, January 25, 2010
DAVOS, Switzerland — Global leaders and bankers will be looking for firm signs at the Davos forum this week of China's determination to control the hot money pouring into its economy.
A year after China's Premier Wen Jiabao sternly lectured the United States and other western nations at the World Economic Forum for causing the international financial crisis, markets are now jittery over "asset bubble" warnings around his country.
With China and India two of the hottest economies around, comments by Chinese First Vice Premier Li Keqiang and top Indian cabinet member Kamal Nath will be seized upon at this year's forum which starts in the Swiss resort on Wednesday.
Chinese officials have already indicated that the focus of the speech by Li, a senior member of the Communist Party's ruling politburo, will be the financial crisis and reforms.
The world's major emerging economies, China and India have survived the storms of the past two years better than their Western rivals.
But the state of China's property and stock markets and its soar away growth -- 10.7 percent in the fourth quarter -- has heightened inflation fears which has already forced the Beijing government to cut back on bank lending to deter a consumer splurge on cars and property.
Inflation is also rising in India where increased manufacturing has spurred a new growth surge in recent months. India's central bank, the Reserve Bank of India, meets on Friday and is expected to drain some of the liquidity pumped into the financial system last year to encourage lending, analysts said.
Chinese officials have already indicated that the focus of the speech by Li, a senior member of the Communist Party's ruling politburo, will be the financial crisis and reforms.
The world's major emerging economies, China and India have survived the storms of the past two years better than their Western rivals.
But the state of China's property and stock markets and its soar away growth -- 10.7 percent in the fourth quarter -- has heightened inflation fears which has already forced the Beijing government to cut back on bank lending to deter a consumer splurge on cars and property.
Inflation is also rising in India where increased manufacturing has spurred a new growth surge in recent months. India's central bank, the Reserve Bank of India, meets on Friday and is expected to drain some of the liquidity pumped into the financial system last year to encourage lending, analysts said.
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