The lens of government intervention in China has led foreign observers to misinterpret some of the most important developments this year in the foreign exchange market and the stock market.

The Chinese economy is simply too big to remain tied to the once useful monetary anchor of the renminbi–U.S. dollar peg. It is time to let it go. In the short term, it would help deliver a warranted Chinese monetary easing by helping to stabilise the effective exchange rate and to facilitate an orderly unwinding of the Chinese corporate carry trade.

With the Fed publicly considering an end to its massive, open-ended purchases of long-term securities and foreign capital fleeing home from emerging markets, many fear that Asia’s economies could come crashing down, as they did in the late 1990’s, writes Liu Mingkang.

While the Chinese refer to America’s fiscal cliff as caizheng xuanya, reactions in Chinese media to the United States Congress’ recent fiscal cliff compromise have varied from disappointment to downright harsh criticisms of the U.S. political system.

The events in 2010 related to China-US relations do not bode well for regional stability in Asia. The first three months of 2010 witnessed bilateral contentions