| Guo Tianyong: China’s Economy Faces Challenges Only if the US government resumes its “strong dollar” policy and shrinks its deficit can the security of China’s enormous holdings of US bonds be guaranteed, claims Professor Guo Tianyong from the School of Finance at the Central University of Finance and Economics. At present, the domestic economy is facing some difficulties, with the bankruptcy of a large number of small and medium-sized export-oriented enterprises and the slowdown of profit growth in large and medium-sized industrial companies. Moreover, the international situation is deteriorating rapidly. Under these circumstances, China should hold enough foreign exchange reserves to deal with potential capital outflow, such as has occurred in the ROK and Russia. |
