...I have heard that the PRC is starting to see some inflation...
Inflation is rough there. From May 2011 to December 2011 the inflation on basic foods was up 5-10% in the same markets.
Isn't the interest rate also high out there?
The actual interest rate is indeed very high. But you'll have to know the right place to invest first.
The interest rate in banks are highly regulated to a very low level. The returns of bonds do not match CPI either.
The stock market in China is basically a scam of Chinese government to cheat out people's money to save and foster the corrupting and inefficient state owned enterprises. It's the heaven of manipulators and speculators, especially those who has relationship with government officers, but the last place any serious investors will look at.
The interest rate of private loans, as a reaction, is very high. But it's not without risk. Any interest rate higher than 400% of the nominal interest rate of banks, is not protected by the law of PR China.
You could also invest in houses and precious metal. Or you can directly invest into some business without stock exchanges. But none of them are as safe as doing so in western countries, due to the unpredictable future move of the non-constitutional PRC government.
