US measures could help Chinese exports, but cause inflation

Economists recommended China use more selective policies in the face of possible opportunities and risks from a third round of quantitative easing announced by the US Federal Reserve.

Opportunities include restoring confidence in export demand and an inflow of investment, but risks include exchange rate fluctuation and higher inflation, they said.

On Thursday, the Federal Reserve said it would buy $40 billion of mortgage debt per month and continue to purchase assets until a marked turn is seen in the US employment outlook.