Chi­nese infla­tion is expected to trend lower in Jan­uary, pro­viding room for Bei­jing to stim­u­late its economy if the Euro area expe­ri­ences a sharp reces­sion. How­ever, econ­o­mists do not expect aggres­sive stim­ulus pack­ages to be put in place as Bei­jing aims for a smooth lead­er­ship tran­si­tion this year.

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