China's policies are intertwined

China's policies are intertwined. Two clear results of the People's Congress have been a willingness to allow systemically unimportant companies declare bankruptcy and to allow the Yuan to weaken. In many respects these two policies are intertwined. If the administration is to cut off funding to failing entities it will need the manufacturing sector to return to being a central performer in the country's growth engine. A weaker currency would certainly help in that objective.