China Backpedals
Forget the Fed, it is time to watch China. As the world’s largest developing market, China’s economy matters, and like it or not, the US and Chinese economies are now permanently tethered. A weak China, not a strong China, is a threat to the continuation of the US recovery, and hope for emerging markets. Conversely, China cannot thrive unless the US economy is healthy. This new world means the end of true sovereignty for economic policymakers.
