英语文摘:Inflation control target, how far to go?

There are a great deal of uncertainties in global recovery due to sluggish growth, rising inflation and festering debt woes in the United States. The euro zone and Japan will lead to more uncertainties in global recovery, which will affect China's economic development and complicate China's macro-economic control tasks..

On Aug. 2 U.S. President Barack Obama signed a bill lifting the nation's debt limit through 2013 and cutting the deficit by more than 2 trillion U.S. dollars.

On Aug. 5 Standard & Poor's (S&P) downgraded the U.S. credit rating from its top-notch AAA to AA-plus for the first time ever, just days after the U.S. government narrowly escaped an uNPRecedented debt default.

The United States raising its debt ceiling is a double-edged sword to China. In the short term, the US economy could possibly avoid suffering from a "double dip" recession and introduces the third round of the quantitative easing policy, which will reduce the global financial market risk. This is conducive to China's steady economic growth because the United States is one of China's most important export markets and is also conducive to the security of China's U.S. dollar assets and keeps the exchange rate of the RMB/US dollar stable.

In the long term, the current dispute between Republicans and Democrats on the debt ceiling warns China that the United States will ignore the interests of creditors for the needs of domestic political struggles.

In the meantime, oil price fluctuations following turbulence in West Asia and North Africa will also affect China's economic development.

The whole world is facing a common challenge of inflation, with all countries fighting with consistent macroeconomic policies and looking for more coordination internationally.

The Chinese government is sticking to its macro-regulation stance and striving to curb rising inflation, however, reaching the inflation control target will be a tough battle.