China Plays the Long Game in Shift to ‘Cross-Cyclical’ Strategy
- New approach means preemptive action, economists say
- Policies will also focus on long-term, structural issues
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The Chinese Communist Party has a new catchphrase to guide its economic policy, a “cross-cyclical” approach that government advisers say means taking action sooner, in smaller steps and with a longer time frame in mind.
It’s a departure from counter-cyclical policy, which is when central banks and governments add stimulus to spur a slowing economy -- like cutting interest rates or taxes and boosting infrastructure investment -- and tighten when growth starts accelerating.