Russia-Ukraine Conflict May Reduce China Policy Space: State Researcher

The escalating conflicts between Russia and Ukraine and the resulting higher commodity prices may fan inflation and reduce the People's Bank of China's policy space, Zhang Ming, a senior fellow at the Chinese Academy of Social Sciences. With the adjustments in global capital markets, foreign funds may also exit China’s stock markets, increasing volatility, Zhang said in his personal WeChat blogpost. The higher global commodity prices are likely to force the Federal Reserve to quicken its policy tightening, slowing global growth further and causing more volatility, Zhang said.