China meanwhile seems to have dodged a currency crisis and is busy bolstering its economy, growing the nation’s military muscle and securing influence abroad with hundreds of billions of dollars in infrastructure projects. With China’s markets calmed at home, the Communist Party’s message to critics is: our system works.
It’s a long way from the turbulent period between June 2015 and March this year when the economy seemed to be lurching and market chaos raised concern that policy makers had lost their grip, according to Arthur Kroeber, the Beijing-based founding partner and managing director at Gavekal Dragonomics, a research firm.
"Today, China’s contribution to global macro risk seems pretty close to zero, and the main issues are populist anti-globalization backlash on the political front, and the impact of negative interest rates on the economic front," said Kroeber, author of the 2016 book “China’s economy: What Everyone Needs to Know”. "I’d guess that Xi Jinping is feeling pretty confident about things."
Even with growth at the lower end of the government’s projection and recent data signaling another soft patch, China’s economy is on track to overtake the whole of the euro zone.More in Bloomberg.
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