China planning contingencies for US policy changes, including higher interest rates - report

WSJ report

China is focused on combating the fallout from the US tax plan and higher Federal Reserve interest rates, according to a WSJ report.

"Under the plan, the people say, the People's Bank of China stands ready to deploy a combination of tools-higher interest rates, tighter capital controls and more-frequent currency intervention-to keep money at home and support the yuan."

Officials are most-worried about the yuan weakening, leading to capital outflows.