December 28th, 2010
02:07 AM GMT
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Beijing, China (CNN) – I am enjoying my new assignment in China but, boy, are things surprisingly expensive. Housing prices in the nation's capital seem to be almost as high as those in my last posting - Hong Kong. Food is costlier - especially vegetables, because of bad weather. Even clothing in the "world's factory" isn't cheap.

Fighting inflation: Prices here are expected to continue to rise in 2011. Chinese policymakers have made fighting inflation a top priority.  Economists expect a cocktail of tightening measures, including interest rate hikes, stricter lending practices, and price controls to keep inflation in at bay.

Decent growth: The moves will likely impact growth, too, but many analysts believe a slowdown could be mild. China is still healthy compared to many other economies and is expected to continue to drive the global recovery.

Rebalancing: One way is for China to continue to encourage consumer spending. That should be another theme in 2011. Expect to see higher wages and even a stronger Chinese currency. A more robust yuan should increase local purchasing power and address some of the concerns over inflation.

What themes do you see for China in 2011?

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Filed under: BusinessChina

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