China reigns in the economy, raises rates

Some will say, finally, although there are others that say it is not necessarily, especially considering that recently, there were clear signs of a cool down of the Chinese economy. Earlier numbers showed that the growth of car sales, for example, slowed down dramatically. But other efforts to cool down the construction and property sector, in particular, failed to reign in the overheating economy.

However, it happened and "China's central bank raised official borrowing costs for the first time in nine years Thursday night, a step aimed at slowing breakneck economic growth and inflation but one that could risk social unrest if heavily indebted state companies respond by laying off more workers. Beijing also removed the ceiling on what banks could charge for loans, a measure that paradoxically could make more loans available to risky private enterprises and ultimately enhance China's long-term growth prospects and give its economy much greater stability."

This surely has impacts economies across the globe, as China was one of the countries that kept the global economy going. Other Asian countries are influenced in that they increasingly focused on China as a way to expand their business by either establishing a presence in the country or developing their exports.