From The International Herald Tribune:
It’s hard to get excited about China’s efforts to slow its white-hot economy. Sure, the world is watching – it has to. An overheated China that spirals into crisis could make the region’s 1997 meltdown look negligible. China, after all, is the world’s No.4 economy and one that even Japan – the second-biggest – is relying on for growth.
The United States also has a big stake in a Chinese soft landing. Corporate America has found China’s cheap labor and land to be ideal for boosting profits in a competitive world. And then there is the $326 billion of Treasuries held by China’s central bank. That keeps U.S. interest rates low and consumers in the stores.
Even so, it’s difficult to buy into the view that China really wants to slow its economy, at least not significantly. To date, its efforts smack more of public relations than genuine steps to reduce growth. Then again, how would China do it? [Full Text]