Preparing for impact of capital

The power of an economy depends not on the products it exports but on its exported capital, for the latter better shapes global economic patterns. Therefore, it is more important for China to become a capital net exporter than a country with flourishing trade data, because it would symbolize its growing ability to influence the global industrial structure, which is essential at a time when it faces economic slowdown and transition.

Ma Guangyuan, independent economist, Beijing News, Oct 29

Hardly any effect will result in the withdrawal of QE by the US Federal Reserve on China's real economy because its purchase of $15 billion a month is very small and global liquidity levels remain high. But China must prepare to tackle another development - the flight of high-end manufacturing industries back to the US at an accelerated pace. China's economic future will be decided not by the Fed, but by its own reform policies.