Changing China

Giant on the move

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from Sebastian Tong:

Stop pushing and we’ll do it

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The growing acrimony in the international debate over China's currency policy has led some to warn that Beijing could dig in its heels if pushed to hard to let its yuan rise. crybaby

But Barclays Capital says Beijing could let its currency strengthen as early as next month, notwithstanding its public resolve against Washington's threat to label it as a currency manipulator.

"They do have a 'If you stop pushing, we'll do it' attitude, which is kind of childish, really. But it will happen because they are the only country in the world, besides India, where there is a whiff of inflation," says Barclays' asset allocation head Tim Bond.

"It's in their own interest. It's the right thing to do."

Barclays expects the relaxation of China's de facto dollar peg to result in the equivalent of a five percent annual appreciation over the next year.

Will China change post-Olympics?

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torch goes outThe million dollar question on the minds of many: Will China change after the Olympics?

I’ve worked intermittently in Beijing for 11 years and in Taipei for 15, but analysing¬†the¬†world’s most populous nation, and an opaque one for that matter, is like a blind man feeling an elephant.

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