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.Â 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?
About Business 360
CNN International's business anchors and correspondents get to grips with the issues affecting world business, and they want your questions and feedback.