China grapples with ‘impossible trinity’

BEIJING: China is struggling to reconcile its push for economic reforms and a freely traded currency with curbing massive outflows of capital sparked by worries over its slowing economy—and a lack of communication is fuelling fear.

The thorny problem represents the so-called impossible trinity, as China’s ruling Communist Party seeks to control the exchange rate and monetary policy, while at the same time moving to freer capital flows, analysts said.