Why is rebalancing the Chinese Economy important for sustaining economic growth? Action Winners Losers Raise the renminbi Households as consumers, Exporters especially middle and lower PBoC middle classes Service industries Raise interest rates Households as savers, Capital intensive especially the middle and industries upper-middle classes Real estate Service industries developers industries Banks Small and medium governments enterprises Speculators PBoC Raise wages Households as workers, Employers, especially lower middle especially classes and urban workers income labor Consumer and retail intensive companies businesses Capital intensive industries with domestic customers Transfer state assets Households, with the Government, distribution depending on especially local the form of privatization officials What is the Global Economic Environment for Rebalancing? TWO TRACK GLOBAL ECONOMY
Why is rebalancing the Chinese Economy important for sustaining economic growth? Action Winners Losers Raise the renminbi Households as consumers, especially middle and lower middle classes Service industries Exporters PBoC Raise interest rates Households as savers, especially the middle and upper-middle classes Service industries industries Small and medium enterprises Capital intensive industries Real estate developers Banks governments Speculators PBoC Raise wages Households as workers, especially lower middle classes and urban workers Consumer and retail businesses Capital intensive industries with domestic customers Employers, especially labor intensive companies Transfer state assets Households, with the distribution depending on the form of privatization Government, especially local officials What is the Global Economic Environment for Rebalancing? TWO TRACK GLOBAL ECONOMY income