Currency appreciation merely the start for growth in China economy

CHINA

China needs to maintain an annual GDP of over 8% in order to support job creation, or rising unemployment will lead to political unrest.

2009 saw the effects of the Government’s infrastructure spending plan supporting GDP to an impressive 8.7%. 2010 export figures have already begun to recover, as the global economy gradually exhibits signs of life. But with the current uncertainty among the Piigs nations – which include a cocktail of double-digit unemployment rates, spiralling budget debt ratios and yields that make Latin America look like a safe haven – can China really rely on a continued recovery in global trade? Following record amounts of quantitative easing, inflation has returned to the Chinese economy and it h...