Hu Jintao, President of China
Monday 17 January 2011 – by Will Henley
As China’s economy surges and the US looks to be eclipsed in coming decades, Western leaders have been beating a path to the Chinese President to establish stronger ties with the waking giant. Bejing is the largest holder of US Treasuries in the world – with around $900bn in its coffers – and the constant threat for US officials is that Hu could decide to dump the bonds and bring prices plummeting downward. This makes Hu’s evident frustration at the US Federal Reserve’s decision to extend its quantitative easing (QEII) programme all the more risky for America. Expect currency and QE tensions to continue to simmer through 2011 and beyond. The son of a tea trader who was denounced during the Cultural Revolution, Hu has consolidated his power at the top of China since becoming General Secretary of the Communist Party of China in 2002 and President of the party and chairman of the Central Military Commission. Speculation however is already rife over who will replace him (Vice Premier Li Keqiang is a favourite) and the whispers are that he could seek retirement within the next two to five years. Learn more about the GFS Power 50, a countdown of the most influential people in worldwide financial regulation in 2010.
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