In Depth: China Turns to Credit Easing to Kick-Start Sluggish Economy

As Beijing seeks to kick-start China’s sluggish economy with a jolt of fresh liquidity, credit easing is set to be its tool of choice.

“We will step up implementation of the prudent monetary policy,” said Premier Li Keqiang in his 2022 government work report delivered to China’s top legislature on March 5. “We will use monetary policy tools to adjust both the monetary aggregate and the monetary structure, so as to provide more robust support for the real economy.”