InfoAnda - China walks policy tight-rope ahead of congress

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

U.S. judge grants bond to man in Afghan murder case | | 30 September 2010
U.S. Starbucks stores get Square mobile pay in November | | 4 October 2012
Iran envoy returns to Azerbaijan after Eurovision | | 25 June 2012

Turkish PM raises objections to Rasmussen's NATO bid | 28 March 2009

Forum Views () Forum Replies ()

Read more with google mobile : China walks policy tight-rope ahead of congress

Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World China walks policy tight-rope ahead of congress AFP - Monday, March 1 Send IM Story Print China walks policy tight-rope ahead of congress Slideshow: Full Photo Coverage: Business & Economy BEIJING (AFP) - – The high command of China's communist leadership emerged enhanced from the global economic crisis, unencumbered by the political constraints in recession-plagued Western democracies. But while the Chinese model of top-down central planning can take credit for maintaining blistering rates of economic growth, analysts warn that leaders are walking a policy tight-rope as they head into the annual session of parliament. "In the crisis, Beijing was able to very quickly pump enormous fiscal and monetary stimulus into the economy while the Western democracies were bogged down by the checks and balances in the government," said Todd Lee, a US-based analyst at IHS Global Insight. "The flipside of this policy implementation efficiency is if the Chinese authorities get it wrong, it could go wrong on a massive scale." China is now grappling with how to choke off trillions of dollars in credit so as to keep inflation from spiralling out of control, all without squeezing growth and stoking mass unemployment in the world's most populous country. The stakes are high not just for China, which is on the cusp of overtaking Japan as the world's second-biggest economy, but for the United States and Europe, which can ill afford another global setback now. Experts say the perilous challenge will exercise China's ruling elite at the annual session of the National People's Congress beginning Friday and beyond, as a new generation of leaders prepares to take power from 2012. China-watchers will also look at the NPC for clues as to when the leadership intends to wind down its 586-billion-dollar stimulus programme. Premature action could also choke off growth. Eswar Prasad, the former head of the International Monetary Fund's China division, said the policy "tight-rope act" could become increasingly difficult to manage. "The growth model has created a number of potential problems -- unbalanced growth, excessive investment and a dependence on exports," said Prasad, who is a senior fellow at Washington's Brookings Institution. "The main challenge facing China's leaders is to ensure that the scale of these problems increases slower than the growth in overall output, which means they still come out ahead." Beijing is already clamping down on rampant lending by state-run banks to calm inflationary pressures, fearing asset bubbles and economic overheating as well as a surge in bad debts. Policymakers have raised bank reserve ratios three times in as many months -- effectively limiting the amount of money banks can lend -- and increased the interest rate on benchmark three-month and one-year treasury bills. Long reliant on exports to fuel its economic boom, China is also trying to boost domestic demand by enlarging subsidies for the vast rural poor to buy home appliances and cars. More drastic measures such as interest rate hikes and an appreciation in the yuan currency -- a move long demanded by the United States and Europe -- could be in the works, analysts believe. But Royal Bank of Scotland economist Ben Simpfendorfer said the government must do more to reconfigure its export-led economic model -- even if this means retreating from its cherished goal of eight percent annual growth. "This is an economy that is clearly imbalanced and needs more structural reform," he said. Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics in Washington, said a far bigger risk for the country was looming abroad, in the West. "There could be mistakes but if you look at their (leaders') track record ... it has been nothing short of brilliant," Lardy said. "I'm much more worried about the external environment ... if the recovery is very delayed in Europe or the US goes into a double-dip (recession) in the second half, then I think then they (Beijing) have a huge problem." Resolving the imbalances exposed by the global crisis will remain a major challenge for the new leaders set to take the helm in 2012-2013, such as Vice Premier Li Keqiang, who is tipped to replace Premier Wen Jiabao. And an understanding of economics will be crucial, said JP Morgan economist Jing Ulrich. "With the financial crisis a recent memory, experience in economic management will likely weigh heavily in the selection of China's new generation of leaders," she said. Recommend Send IM Story Print Related Articles Greece may take more debt steps as EU visit looms Reuters - 37 minutes ago Five Saudi firms to go public before end of May Reuters - 39 minutes ago Iraq to develop Nassiriya after Nippon talks end Reuters - 44 minutes ago WRAPUP 1-India seeks closer ties with Saudi to fuel recovery Reuters - 48 minutes ago Saudi SABIC says to hike steel prices Reuters - 51 minutes ago News Search Top Stories Debt-hit Greece must step up spending cuts: Juncker British banking faces major makeover Vast iceberg could disrupt ocean currents, weather Bigger Afghan operation yet to come: US Hedge funds pile up bearish bets on euro: report More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Vast iceberg could disrupt ocean currents, weather Be of good heart: Happiness helps ward off cardiac disease British banking faces major makeover Hedge funds pile up bearish bets on euro: report 'Zombies' have free speech rights too, US court rules More Most Viewed » Third-hand smoke also bad for you: study Florida killer whale to stay in park after deadly attack DNA reveals some mystery on King Tut, raises questions Pitt, Jolie sue British paper over split claims Sugary soft drinks linked to pancreatic cancer: study More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

Other News on Sunday, 28 February 2010
Iran's Mousavi warns over system's legitimacy waning
US winds down Afghan assault but bigger one on way
Tsunami waves hit French Polynesia after Chile quake |
Britain to investigate passport ordeal in Israel |
Renewed tension looms in Turkey after military arrests |
Pakistan suicide attack kills 4, wounds dozens
China says US diplomat to visit for talks on ties
Tsunami hits Chile as Pacific rim braces for impact
Troops clear last pockets of resistance in Marjah
Small blast shatters doors at bank in Bangkok
Tonga moves 50,000 off coast in advance of tsunami
SeaWorld set for 1st show after trainer's death
Iris scans may prevent mistaken release of inmates
Indian PM in Saudi Arabia for talks
Islam seeks a perch in Tajikistan's political life
Abu Sayyaf militants kill 11 in south Philippines
Four killed in Pakistan suicide bombing
Thaksin supporters denounce Thai court verdict
Toyota president to visit China over recall row: report
Woody Harrelson is a changed man after Oscar role |
Iraq Kurds again likely to be kingmakers post-poll
British banking faces major makeover
Wary Chileans sleep outside; quake affects millions |
Palm comeback falling short
Security tightened in Bangkok after bank blasts |
Depressed Blair 'wanted to quit after Iraq war': report
Berlusconi corruption trial adjourned for a month
Iraq Kurds again likely to be kingmakers post-poll |
Vast iceberg could disrupt ocean currents, weather
US-TECH Summary
Cuba says dead hunger striker was common criminal |
How to decline Facebook friends without offense
Israel confronts protesters near Jerusalem mosque |
US group launches text message aid drive for Chile quake
Google launches 'person finder' for Chile quake victims
Tiny tsunami hits small Japan island: report |
Poll shows Australian government losing lead |
Online gaming sweeps China
Visitor center opens at NY's African Burial Ground
Thousands still lack power after Northeast storm
Taiwan's Ma apologises over poll setback
Clinton faces Latin America test on Iran
Chile quake looms over Clinton Latin America tour
Souped-up Olympian Wang shakes up track
70,000 evacuated as tsunami reaches Japan
Security tightened in Bangkok after bank blasts
N.Korea may return to talks in March or April
Global minimum and maximum temperatures
Grenade attacks damage Thai banks
Australian swimmers ignore tsunami warnings
How to decline Facebook friends without offense |
Japan warns of tsunami up to 10 feet along coast
Toyota's president to visit China on Monday
S.Korea BOK report: dlr status may fade over time
Toyota president to brief media in China
China top holder in US debt, after all
Marie Osmond's son kills self in jump from building |
A Prophet triumphs at French film awards |
Warm winters distress reindeer herders
Peter Gabriel deconstructs music, reconstructs world
Pakistani woman races from rags to riches
S.Africa's small towns hunt for beds for World Cup fans
"A Prophet" triumphs at French film awards
'A Prophet' sweeps Cesar French film awards
In Milan, Armani, Bottega Veneta reaffirm Italian style
Marie Osmond son kills self in jump from building
Bollywood legend wins best actor but boycotts awards
Woody Harrelson is a changed man after Oscar role
Violence flares at Jerusalem holy site
ETA's military chief arrested in France: Spain
Blast kills 11 civilians in southern Afghanistan |
Death toll mounts as storms lash Europe
Hamas leader drugged, suffocated: Dubai police
Death toll from storms lashing Europe rises to nine
Tsunami waves hit Pacific regions after Chile quake |
Clashes erupt at Al-Aqsa mosque after stone attack
Italian held by Qaeda makes plea to Berlusconi: SITE
New U.N. watchdog head faces rising tension with Iran
Storm moves into France leaving three dead
New U.N. watchdog head faces rising tension with Iran |
Yemen arrests 21 in south |
Storms kill 15 in France, three in Spain |
Arms and energy on agenda for Medvedev in Paris |
Violence flares at Jerusalem holy site |
Turkish PM holds talks with armed forces head: report |
Emotional orca show marks 1st since trainer killed
Thai PM orders more security after bank blasts
Voting is brisk as Tajikistan picks new parliament
Video of Taliban commander leaves fate unclear
Afghanistan protects newly rediscovered rare bird
Poll setback tests Taiwan's China-friendly leader
Voting brisk as Tajikistan picks new parliament
Thai king leaves hospital for 4 hours
Sectarian clashes kill 7 in NW Pakistan: officials
Japan evacuates 320,000 on tsunami alert
Australian foreign minister to visit India
Despite protectionism, ASEAN eyes single market
PM expects Indian economy to grow 7% in 2010
China walks policy tight-rope ahead of congress
Korea Gas signs major deal in Canada: report
Statue head of King Tut's grandfather found in Luxor
India rail cracks down on rooftop train travellers
New museum takes shape at heart of Nazi terror
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01