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1) People’s Daily is reminding everyone of Xi Jinping’s very important speech last week, in which called for “giving full play to the advantage of a huge domestic market, so that a new development pattern will gradually be created whereby domestic and...
http://en.people.cn/n3/2020/0730/c90000-9716423.html
http://en.people.cn/n3/2020/0730/c90000-9716423.html
2) foreign markets can boost each other, with the domestic market as the mainstay.”
Beijing is really determined finally to address domestic imbalances, but I am not sure they have yet figured out how. The article says “China has worked to tap the potential of the domestic...
Beijing is really determined finally to address domestic imbalances, but I am not sure they have yet figured out how. The article says “China has worked to tap the potential of the domestic...
3) market from both the demand side and the supply side”. It then goes on to discuss “unleashing the potential of consumption by stimulating consumer spending and increasing public spending, as well as expanding investment in infrastructure and emerging strategic industries”...
4) and adds: “In a bid to stimulate new consumption demand and promote industrial upgrading, China has vowed to step up investment, especially in new infrastructures like 5G, AI and cloud computing.”
These are really all supply-side measures. Basically there are really only...
These are really all supply-side measures. Basically there are really only...
5) three ways to stimulate consumption. One way is to encourage households to borrow more for consumption purposes, but this really isn’t sustainable (and anyway household debt is already so high that households seem more interested in paying it down). A second way is to...
6) implement transfers that directly or indirectly increase household income. The final way is to strengthen the social safety net enough to convince households to reduce their savings rates, although given low credibility this probably cannot happen quickly.
Beijing really...
Beijing really...
7) has to understand that rebalancing demand basically means rebalancing income, and not much else. They cannot rebalance demand by cutting business taxes, building more infrastructure or even – the newest proposal – encouraging migrant workers to start businesses.
