The Economic Downturn in China

Since 2005 the Chinese Yuan has been pegged against the dollar. Instead of allowing market forces to dictate, the People's Bank of China has manipulated their exchange rate and kept their interest rate artificially low. This has fueled China's export growth because they are able to manufacture goods at a much lower price than other countries. However, the nation is now faced with an economic slowdown and inflationary fears. Given their artificial constraints, what types of policy will China use to combat this?

http://www.businessweek.com/news/2011-12-01/china-s-reserve-ratio-cut-may-signal-economic-slowdown-deepening.html