China, Global Economic Recovery | featured news

China's undervalued yuan is triggering an international currency war that risks undermining the global economic recovery, U.S. Treasury Secretary Timothy Geithner said.

A slowdown, or worse, in China's economy because of bursting stock and real-estate bubbles was high on most Davos 2010 participants' check-lists of risks to the recovery in global economic growth. They may have got some reassurance today from China's central bank's decision to rein in the lending that is inflating them by raising its capital reserve ratio requirement of the country' big banks for the second time in a month.

Stocks slipped, hobbled again by concerns about the ability of China's economy to act as a catalyst for global recovery.