Beware of China’s Political Grandstanding on Stimulus
Beijing’s big ideas have not been followed by concrete actions. There are two plausible explanations.
Beware of China’s political grandstanding on economic stimulus.
Source: AFP/Getty Images
China has been talking about stimulating its economy for almost three months — words that have mostly not been matched by deeds.
In late September, Beijing vowed to boost fiscal spending at a quarterly Politburo meeting traditionally reserved for discussing non-economic matters. In reports emerging late Monday from the December gathering, the rhetoric was taken up a notch further. Top officials adopted dovish language on next year’s monetary policy and pledged to “stabilize property and stock markets” in 2025, while the nation’s residential real estate sector enters a fourth year of downturn.