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Go back nearly 30 years, and few would have thought that any of the three cities were about to remake the world for the better. In September of 1982, the Hong Kong stock exchange lost a quarter of its value after Margaret Thatcher, flush from her victory in the Falklands...

Author: /time Magazine | Title: A Tale Of Three Cities | 1/17/2008 | See Source »

Recognizing the danger of growing imbalances, China's government is now trying to improve the quality of growth, while de-emphasizing the rate of growth. Beijing hopes this will help reduce social tensions by promoting more equity in income distribution and access to consumer goods, including housing, through increasing rural...

Author: /time Magazine | Title: Finding the Right Balance | 1/17/2008 | See Source »

The exchange rate remains a contentious issue. Since China's currency, the yuan, was delinked from the U.S. dollar in July, 2005, it has appreciated about 14% against the greenback. However, because of the declining international value of the dollar, the yuan has depreciated by some 6.4% against the euro...

Author: /time Magazine | Title: Finding the Right Balance | 1/17/2008 | See Source »

China has resisted foreign pressure for faster appreciation of the yuan out of concern that such action will slow the economy and reduce employment. But policymakers also know their stance is fueling trade frictions and that exchange-rate appreciation is not always bad for job creation. A stronger currency could...

Author: /time Magazine | Title: Finding the Right Balance | 1/17/2008 | See Source »

To restore balance and maintain harmony, more reforms will be needed, among them a significant increase in government spending on social infrastructure, such as education and health care, and on environmental cleanup. With its vastly improved fiscal situation, the government has the money to do these things. It has other...

Author: /time Magazine | Title: Finding the Right Balance | 1/17/2008 | See Source »

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