former vice-chairman of the Standing Committee and now head of China’s
green energy drive, said Beijing was dismayed by the Fed’s recourse
to "credit easing".
there will be a change in monetary policy as soon as they have positive
growth again," he said at the Ambrosetti Workshop, a policy
gathering on Lake Como.
keep printing money to buy bonds it will lead to inflation, and
after a year or two the dollar will fall hard. Most of our foreign
reserves are in US bonds and this is very difficult to change, so
we will diversify incremental reserves into euros, yen, and other
currencies," he said.
are more than – $2 trillion, the world’s largest.
is definitely an alternative, but when we buy, the price goes up.
We have to do it carefully so as not to stimulate the markets,"
suggest that China has become the driving force in the gold market
and can be counted on to
buy whenever there is a price dip, putting a floor under any correction.
Mr Cheng said
the Fed’s loose monetary policy was stoking an unstable asset boom
in China. "If we raise interest rates, we will be flooded with
hot money. We have to wait for them. If they raise, we raise.