The U.S. Federal Reserve shrinking......>

CHINA PRESS: The U.S. Federal Reserve shrinking its balance sheet may not have

much of a short-term negative impact on the Chinese economy, but the long-term

risks may not be small, the Economic Information Daily said in a front-page

commentary Monday. In the short term, the Fed's action won't be a great shock to

the Chinese economy, as the process will be gradual and China can manage the

impact on cross-border capital flows and the yuan exchange rate, the report

said. The U.S. economic structure has not improved significantly since the 2008

financial crisis and the room for the global economy to strengthen is not large,

so China's growth has played a key role in driving global growth. But China's

growth could slow down as policy controls on the property sector increasingly

tighten and production prices increase, the newspaper said. Chinese growth

momentum could slow down in 2018 and 2019 and thus weaken the global economy's

ability to battle against risks caused by the Fed balance sheet cut. (Economic

information Daily)