China’s Stimulus Policies Now Put Emphasis on Consumption, Expert Says

00:00

00:00/00:00

Listen to this article 1x

China has in recent months intensified efforts to boost the economy with a series of stimulus measures

The recent wave of policies aimed at stabilizing the economy and boosting confidence marks a shift in China’s macroeconomic approach, an expert familiar with monetary policymaking told Caixin.

“The recent policy package isn’t merely a stimulus. Rather, it reflects a major shift in policy logic, combining short-term, demand-boosting measures with a range of reform and structural adjustment plans,” said an expert close to the People’s Bank of China (PBOC).

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China is shifting its macroeconomic approach, combining demand-boosting measures with structural reforms to strengthen domestic demand, focusing equally on consumption and investment.
A recent 10 trillion-yuan package addresses local government debt, while the central bank maintains a supportive monetary policy stance, focusing on interest rates over quantitative targets.
Experts emphasize the need for simultaneous economic stimulus and structural reforms to address long-term domestic demand challenges, as China aims for stable growth and high-quality development.

AI generated, for reference only

Who’s Who

China-US Green Fund: The China-US Green Fund is chaired by Xu Lin, a former official at the National Development and Reform Commission. The fund likely focuses on fostering green investments and sustainable development projects between China and the US, leveraging Xu Lin's expertise in addressing structural economic challenges and promoting long-term domestic demand solutions.

AI generated, for reference only

What Happened When

Early 2024：: The central bank began the year with broad stimulus measures, including reserve requirement and interest rate cuts to support growth.

By mid-year 2024：: Focus shifted to structural adjustments with a May policy package aimed at easing the property market's drag on the economy.

June 2024：: The PBOC laid out its new monetary framework, moving away from quantitative targets and focusing more on interest rates.

Late September 2024：: The central bank announced a fresh batch of aggressive stimulus measures followed by an unusual Politburo meeting addressing economic challenges.