China’s Pivot to Consumers Needs More Fiscal Punch, Pettis Says
- China needs to deploy more direct support: Michael Pettis
- Economy aims for 5% growth but will struggle without consumer
This article is for subscribers only.
Chinese officials need to consider direct support to households in order to spur economic growth, according to longtime China economist Michael Pettis, floating a proposition Beijing has been reluctant to embrace.
The world’s second-largest economy may potentially see a revival in confidence — and thus consumption — this year, said Pettis, a senior fellow at the Carnegie Endowment for International Peace, in an interview on Bloomberg TV with Tom Mackenzie. He warned that such a recovery isn’t guaranteed, and may require more action from Beijing.