Is China trying to get out in front of the US presidential election cycle and take itself out of play?
Looks like it to me.
The overnight announcement from Wen Jiabao that China must shift the economy to a more domestic demand-led model from the export-drive model of the 90s and -00s is music to the US’s ears.
So too are the comments from Central Bank governor Zhou this morning on the widen of Yuan trading bands.
Slowly bit surely, China finally appears to be liberalizing the economy.
Tough talk on China from Mitt Romney is no doubt responsible for the shift.
