Caixin Summit: China Needs Expansionary Fiscal Policy to Drive Demand, Yu Yongding Says

China can still be expected to achieve a “relatively high” economic growth rate of 5% or 6% in coming years if appropriate macroeconomic policies are in place, Yu Yongding, an economist and member of the Chinese Academy of Social Sciences, said Thursday at the Caixin Summit.

The world’s second-largest economy has been facing new challenges since last year, such as sluggish aggregate demand, which are a drag on the country’s economic recovery, said Yu, a former member of the monetary policy committee of the People’s Bank of China.