From this issue of Business Week: “Its status as global powerhouse is no longer in doubt. Now, the world anxiously eyes the Asian giant’s policy maneuvers and data reports
China has come of economic age, and the world is starting to take notice. Case in point: global reaction to two late-October events. A report that the Middle Kingdom’s third-quarter gross domestic product had moderated to a 9.1% year-over-year growth pace, from a 9.6% rate in the second quarter, sent a tremor through world markets.
But the real eye-opener came when the People’s Bank of China (PBOC) raised the country’s one-year benchmark interest rate by 27 basis points, to 5.58% — the first such hike in nine years. Stocks of commodity-goods providers — buoyed all year long by huge demand in China — dove on fears that China’s torrid growth might be starting to slow.”