The Bo Xilai saga may be dominating headlines about China, but nuts-and-bolts policy is also taking a surprising—if less sensational—direction in the run-up to the country's forthcoming change of leadership. Rather than putting financial innovation on hold until the political handover is safely out of the way, as many might expect, reformists in the leadership have beenintroducing lots of new initiatives. My team of China analysts and I believe that these plans are potentially significant, and mark high-level recognition that China must do more to liberalise its economy and financial system as it prepares for the challenges of the next few years.

What would greater Chinese integration in the global economy mean for your business?Let me know at: robinlbew@eiu.com.

Best regards,

Robin Bew
Chief Economist

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