News: Economy Of The People\'s Republic Of China

Even though Hong Kong is a special administrative region of the People’s Republic of China, it has complete autonomy in business issues and can form its own business policies.

Due to the significant transformation undergone in the Chinese economy, the State Council of the People’s Republic of China issued the new “Regulations on the Administration of Foreign Exchange of China” effective August 1, 2008.

China became the world’s second largest economy in 2009, passing Japan, which has held this distinction for decades. The People’s Republic raised its growth forecast for 2008 to 9.6% from 9% which took the total to over $4.6 trillion. The Chinese government says it will have economic growth of 8%.  The financial ministry has

The People’s Republic buys our US Treasury notes, “loaning us money”. Since our economy is reeling, the People’s Republic is now demanding “security” (Translation for those who can’t read Mandarin, “collateral”) for those notes … or they could cash theirs in… to the tune of hundreds of billions of our dollars.

Despite the People’s Republic of China’s conspicuous growth over the post-1978 transform period, questions hold arisen none however the sustainability of its exchange rate policy and the soundness of its economy system.