The expected effects are the large foreign cash reserves and strong exports. The unexpected effects have been the massive growth of China's underground banking

The expected effects are the large foreign cash reserves and strong exports. The unexpected effects have been the massive growth of China's underground banking system and the housing bubble. To keep exchange rates low China needed to keep interest rates low. They did this by legislating Banks' deposit account interest rates. In turn this caused everyone to look elsewhere to invest their life's savings. Thus we get large ghost towns and ship yards acting as unregulated banks. I expect this tactic to burn China bad at some point in time.