EM exporters appear to have benefited from the recent investment-led rebound in China. But with China's infrastructure spending now easing again and policymakers determined to rein in credit growth, investment looks set to slow. Further ahead, the programme of reform announced last week signalled the desire of China's leaders to switch to a less investment-intensive model of growth. Weaker investment growth in China would primarily be a concern for the commodity-exporting EM regions, such as Latin America and Africa. By contrast, suppliers of consumer goods in Emerging Asia should benefit from Chinese rebalancing.
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