China's reliance on foreign-exchange reserves and capital controls cannot be maintained for December 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.
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.