Balancing policy in the Year of the Tiger

In Chinese culture, the tiger's vivid stripes symbolise the balanced forces of yin and yang. It is perhaps appropriate the Government, while continuing to provide support for the consumer, has chosen this year to take steps to avoid the imbalances that can grow out of a credit bubble

China’s Year of the Ox has, appropriately enough, been a year of fortitude and patience. The Government’s economic stimulus was put to work and it has worked. While economic growth dipped to 6.2% year on year in the first quarter of 2009, it had rebounded to 10.7% year on year by the final quarter. According to preliminary figures, growth for the full year was 8.7%. China overtook the US last year, to become the world’s largest market for cars, with estimated average sales of more than one million units a month. China’s Year of the Golden Tiger begins within hours of the West celebrating...