Two Reasons Why America Must Take a Special Interest in China

Summary

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OF THE many challenges posed by China to the US, I focus today on two, and will begin with the smaller. As the frenetic US presidential election campaign entered its final stretch, there came news of a surprise 0.27 per cent rise in interest rates. The markets took feverish note. This was a major move. No, not from the US Fed - but from the Bank of China.

China's first change in interest rates since 1995 takes the key lending rate to 5.58 per cent. Suddenly the oil price dropped and prices of basic metals and commodities also cooled.

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Two Reasons Why America Must Take a Special Interest in China

Ten years ago such an announcement would have scarcely caused a ripple. Now it brings an immediate realignment of currencies and markets and intense speculation as to what it all means for Asia and the world. Yet again, China makes its presence felt. But it is not the only China challenge that the new incumbent in the White House is g...

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