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very concerned about the deflatiion mentioned here
> Which brings me to the bottom line of my latest sojourn to China: China is
> now beginning to come to grips with the global context of many of its
macro
> problems. The senior officials we met with in Beijing were quite frank in
> expressing their concerns about global deflation. They were also convinced
> that an overvalued US dollar was ripe for a fall. Moreover, official
Beijing
> now concedes that both of these developments have important consequences
for
> China. This is a subtle but important shift. I detected greater concern on
> both counts than I did in several visits earlier this year. To me, that's
> real progress. The difference comes in the sticky area of blame. China
> argues that it is an innocent bystander -- and a source of resilience --
in
> an otherwise shaky global economy. The rest of the world sees it
> differently -- that China's emerging economic prowess is now part of the
> problem.
> It's tempting to find a scapegoat in tough economic times. It would be one
> thing if the world were booming -- there would be plenty of prosperity to
> share. But with today's global economy in lousy shape, it's more of a
> zero-sum game -- one country's gains can often come at the expense of
> another's. Such are the pressures and finger-pointing that China must now
> face. One of the investors on the trip summed it up best, "Just as the
world
> must now cope with China, China must also cope with the world." The global
> response to China looms as one of the biggest unknowns in the macro
> equation. It could well be the most important test of all for the world's
> greatest growth story.
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