China's role as an engine of the global economy has become firmly established in recent decades. By the early 2020s, China could become the largest economy. In the next decade, Chinese demand will continue to reshape international trade, and play a vital role in determining which economies will grow or stagnate. The trend has been for rising raw materials imports to satisfy China's domestic demand, but such demand can be volatile, reflecting abrupt policy changes and factors specific to the Chinese economy. The labor market, as well, has entered a period of structural change, with the risk of strikes as workers enjoy greater bargaining power with firms.

With this in mind, business intelligence on the Chinese economy and its global economic developments, credit risks, and inventory management is essential for any company with an international presence. Analysis of the short-term and long-term factors governing the Chinese economy, as well as the role of Chinese demand in the world economy, should help to guide robust decisions. Identifying the countries and sectors with upside exposure to China's economic growth, both to seize new market opportunities and to manage risk when China's import demand slows or contracts, will be crucial for long-term corporate strategy and short-term risk management. Patterns of growth will continue to change, and it is important to recognize that China is a vital component of global economic growth patterns.

Click here to read full report on China's Role in Shaping World Trade.

While Latin America will be affected by a slowdown in global economic activity over the second half of 2010, many countries in the region continue to post relatively robust economic growth. Despite subdued demand in its traditional export market of the U.S. and the EU, countries such as Peru and Brazil have attributed their economic recovery to a rapid rise in investment. Latin America will continue to offer a lucrative export market and investment destination over the short term despite the likely slowdown. Overall, D&B expects the region as a whole to experience economic growth of 4.4% in 2010, lagging behind Asia Pacific with a growth of 5.4%.

Nevertheless, there are a number of significant risks that will affect doing business in the region, notably the risk of a market correction in exchange rates, inflation pressures, ongoing political uncertainty, and more subdued economic recovery or recession in certain countries.

Click here to read full report on Latin America.

At first sight, the recent EU-wide bank stress tests were passed with flying colors, amid enhanced transparency and incentives for banks to develop plans for emergency funding. Financial markets reacted fairly positively, with bond, equity, and currency markets remaining fairly calm. Of the 91 leading European banks tested, only seven failed the severest of the stress scenarios. Banks had to prove capable of keeping their Tier One capital ratios-the ratio of a bank's capital to its risk-about 6% in order to pass the tests. However, D&B believes that the tests were only partially successful, with many negative aspects clouding the results; in particular, the test criteria were considered not nearly stringent enough to comprehensively test the health of the European banking sector.

The main problem of the tests was that they did not properly account for the risk of a sovereign debt default in the euro-zone in 2010-11. Another problem lies in the fact that not all sovereign bonds have been tested. The assets tested were only those sovereign bonds that are traded-so-called mark-to-market-rather than those held to maturity by banks. D&B is also concerned that the tests' scope was not sufficient to fully test the health of European banks. This is because the tests focused on asset quality rather than liquidity risks. That being said, the upside of these tests is that they enhanced transparency in the financial sector, restored some confidence in national and EU-wide banking supervision, and helped banks to develop plans for emergency funding in the event of severe shocks.

Click here to read full report on the EU Bank Stress Tests.