I don't think the world can tolerate such a massive surplus.
I do not believe that 0.9 percent is sustainable, especially given the price liberalization in areas such as gasoline and utilities.
In the past, it's a window to raise funds for Chinese companies. And, in the future, it might also be itself a destination for Chinese money abroad.
The Taiwan issue is miles ahead of any other agenda, as far as China is concerned. A reiteration of the one-China policy would be the minimum expectation from China. Any comments against the current movement would be considered a breakthrough.
These are unprecedented surplus volumes, reflecting the structural changes of China becoming the factory of the world.
China has become one of the forces lifting these two countries out of recession.
The biggest beneficiary of all this is the United States. Look, a Barbie doll costs $20 but China only gets about 35 cents of that.
This is economic revision makes the figure closer (to actual GDP), but still there is underestimation.
This highlights a re-accelerating economy led by consumption and investment.
This is a landmark move for China, to partially open the door in its capital account. The significance of this, in my opinion, is perhaps greater than the exchange rate reform in July.
