INDIA, China.. on the same page...

China wants to avoid capital-outflow and real-estate bubble... No doubt, it has reduced the bubble-fear by a consistent monetary-policy since 2010, which deflated it, but high interest-rates, later, choked demand which is the reason behind falling growth-rate... If China wants to increase its growth-rate it must reduce interest rates, but capital outflow, in search of higher returns would reduce investment in the economy, more in favour of the US dollar, but Chinese have already overinvested in the US and US dollars... More, Chinese money in the US will not reward them because the US is already capital rich... The desire for higher interest-rates in the US (probably) would not materialise because the US interest-rates are already rock-bottom and the economy is going through the liquidity-trap, means interest-rates will remain where they are for an indefinite period... So, Chinese money-flowing in US may not be rewarded as expected anytime soon... Moreover, when Chinese money flows to the US, it means more money-supply, lower interest-rates and a depreciating US dollar... The whole point is that the time is not right for investment in the US economy or Chinese money will have to wait longer for better dollar and interest-rates...  China is falling in to inflation again and again, means it also needs to improve supply-side (like INDIA) so that inflation remains under control and bubbles deflated... INDIA and China are almost on the same page as far inflation is concerned...