Economics
Xi’s Keeping His Powder Dry While Trump Splurges on Stimulus
- World’s two biggest economies taking different approach
- China has so far held off a major borrow-and-spending spree
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The world’s two biggest economies are taking very divergent paths on how to fight the slump triggered by the coronavirus.
The People’s Bank of China has injected money into the financial system but held off from steep interest rate cuts. The government is accelerating spending on infrastructure and has lowered taxes but has come nowhere close to the 4 trillion yuan ($570 billion) bazooka-style stimulus it unleashed during the financial crisis.