Window cleaners work on the Shanghai World Financial Center in the financial district of Pudong in Shanghai. Financial deleveraging needs to continue, as it matters for China’s medium- to long-term development. However, to prevent the economy from slowing further, deleveraging should be postponed or even redesigned. Photo: AFP
Hao Zhou
Opinion

Opinion

Macroscope by Hao Zhou

Is China targeting the right enemy in its war on debt?

Hao Zhou says Chinese policymakers torn between spurring growth and pushing financial deleveraging should first differentiate bad debt from good – they should reform the state sector, but also provide help to ease companies’ cash flow

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Window cleaners work on the Shanghai World Financial Center in the financial district of Pudong in Shanghai. Financial deleveraging needs to continue, as it matters for China’s medium- to long-term development. However, to prevent the economy from slowing further, deleveraging should be postponed or even redesigned. Photo: AFP
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