China Review News (CRN) recently published an analysis that discussed the new challenges the Chinese economy will face in 2013. The author expressed the belief that the economy is having a weak rebound, which will be affected by six primary variables: (1) How strong will the stimulation policies to be applied be and how long will they be sustained? (2) How tight will the government’s control of the housing market be? (3) How will the “shadow banks” (non-government sponsored private loan providers) be monitored and regulated? (4) How high will the exit strategy pressure of the stimulation policies be in the second half of the year? (5) What impact will the completion of the U.S. QE “Quantitative Easing” policies have on China? (6) What impact will Japanese Prime Minister Shinzo Abe’s new policies (inflation, deficit, and depreciation) have? The article concluded that the Chinese recovery will not be a smooth one.
Source: China Review News, January 24, 2013