The latest issue of the Dallas Fed's expand your insight discusses recent developments in China, and their broader implications. A few of the conclusions:
The influence of the Chinese slowdown on commodity prices has been measured so far.
Worries about China-induced financial market turmoil, both regionally and globally, have not materialized. One specific concern that can be put to rest is whether China will reduce its holdings of U.S. Treasury securities. So far, as China’s foreign currency reserves have been climbing steadily, so has its holding of U.S. treasury securities.
Whether China can eventually achieve a gradual, orderly slowdown remains to be seen, particularly in the face of rising inflation.
You can read the entire article here.