Greenwood: Policy squeeze needed to curb Chinese inflation

Invesco's chief international economist John Greenwood said Chinese inflation is set to remain in the 4% to 6% range unless the authorities move to tighten policy.

Greenwood added while the country's trade growth will slow somewhat, it is likely stay in the high teens, and domestic growth in China will remain "very vigorous". "As a result of the global slowdown, I would expect China's trade surplus to slow a little bit, but not drastically," he said. "China's exports are growing substantially faster than the growth of the exports of any other country in Asia and the trade surplus is widening a lot more. So China is clearly gaining ground and that could be simply due to reallocation of labour and its own competitiveness, but it could also be an a...