U.S. Rate Rises will Impact China Economy

Economists almost all agree that the U.S. Federal Reserve will raise interest rates this year. But while experts have a lot to say about higher rates’ effect on the United States, there’s been a lot less talk about what they will mean for the world’s No. 2 economy.

Many newly industrialized countries—such as Brazil and Mexico—will likely suffer from a Federal Reserve rate hike, but for a variety of reasons, China is suited to ride out a tightened dollar supply with relative ease, according to economists.

New York Fed President William Dudley said in a Monday address that the hike could have “disruptive” global implications, and investors are keenly watching China, which has been a key driver of international growth. But experts told CNBC that the country will not feel any significant negative impact from a U.S. rate hike.


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