Economist Brad Setser lays out four points—with links to some source data—in a short primer for understanding China’s economy in his Follow the Money blog at the Council of Foreign relations:
1. Energy use is subsidized – even though China is a net importer of energy
2. Exports continue to contribute significantly to Chinese growth.
3. Both China’s government and its state banks are accumulating an amazing amount of foreign exchange.
4. China’s exchange rate regime doesn’t just influence the foreign exchange market; it also shapes a host of key domestic policies.
Read the explanations here.
