China 's reliance on foreign - currency reserves and capital controls can not be stopped for more than a few years before it runs the risk of hurting the country 's economy , according to Autonomous Research 's renowned analyst ya Chu . She says that China 's focus on outflows could have a negative impact not only on business , but also in average Chinese households . Chu also warned of the consequences of entering a trade war with the US , and says measures such as import taxes and onerous investigations will do more harm than good .
China's reliance on foreign-exchange reserves and capital controls cannot be maintained for more than a few quarters before it runs the risk of hurting the country's economy, according to Autonomous Research's renowned analyst Charlene Chu. She says that China's focus on outflows could have a negative impact not only on business, but also in average Chinese households. Chu also warned of the consequences of entering a trade war with the US, and says measures such as levying taxes and onerous investigations will do more harm than good.