China needs to implement a more liberal financial system. Otherwise, China will always fall under the whims of global liquidity. Not only should China implement monetary policies to dictate the economy of China, but must also implement monetary policies to dictate economies abroad.
Capital flight, direct investment, and trade deficits in the form of RMB greatly effects the value of global commodities and exchange. China is the world's largest commodities importer and that has a tremendous effect on global prices. And that is leverage the Chinese Central Bank can use to not only implement global economic relationships, but military and strategic relationships as well.
In the end, you just have go into the frame of mind, that its only paper, and you are not losing anything.
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