Domestic prices of raw materials – crucial ingredients in the infrastructure and real estate boom that has powered China’s economic recovery – have soared in recent weeks. Photo: Xinhua
For China, excess economic stimulus not as risky as tapering stimulus too quickly, economists say
- Soaring commodity prices raise questions about whether China created too much demand for raw materials by overcompensating for economic damage from pandemic
- But analysts say higher prices were the direct result of surging post-pandemic demand, coupled with supply shortages of crucial commodities such as steel
Domestic prices of raw materials – crucial ingredients in the infrastructure and real estate boom that has powered China’s economic recovery – have soared in recent weeks. Photo: Xinhua