For the record I cannot see it yet. The political implications are too great (the perceived job losses associated with a loss of competitiveness).
A good article and worth reading.
What keeps Zhou Xiaochuan up at night [RGE monitor]
Friday’s Lex column highlighted the possibility that China’s real reserve growth may be far higher than the published increase in its reserves – and thus a lot more hot money may be flowing into China than the published increase in China’s reserves implies. Michael Pettis – drawing on the work of Logan Wright of Stone and McCarthy - and I have both published online estimates of the “true” pace of Chinese reserve growth. Wang Tao – formerly of the Bank of America – and Stephen Green of Standard Chartered have done similar work.