Effects of Fed's taper move to be limited

Normalized monetary policy helps nation to maintain independence, said top expert

China is able to not only maintain monetary policy independence but also provide a "safe haven" for global investors amid the US Federal Reserve's move to taper asset purchases, a senior economist and former expert with the People's Bank of China said.

The world's second-largest economy has gradually normalized its monetary policy since May last year from the COVID-19 emergency, making it unnecessary to follow the Fed's steps of policy normalization, said Yao Yudong, chief economist and vice-general manager of the Dacheng Fund, a mutual fund manager based in Shenzhen, Guangdong province.

The country's relatively effective control of COVID-19 and overall stability of industrial chains will continue to prop its export growth, which will in turn help the renminbi hold its own, said Yao, who is also former head of the financial research institute of the PBOC, the Chinese central bank.