China’s economic arsenal has ‘more ammunition’ than other countries as 2022 uncertainties loom
- Huang Yiping says China’s zero-Covid strategy worked in the past, but sticking with that approach will influence economic trends for years to come
- Analysts are flagging the risks of economic headwinds, including from a financial slowdown and a tapering of the US Federal Reserve’s pandemic stimulus
Chinese authorities need to stay ahead of the curve to stabilise the national economy in the face of outsized threats in the coming year, senior policy advisers said at the weekend.
The nation’s massive export machine may lose steam, its financial markets could be stressed, and its zero-Covid policy will be further tested, according to Huang Yiping, a former member of the People’s Bank of China’s (PBOC) monetary policy committee.
The warning by Huang, who is now a professor with Peking University’s National School of Development, came as policymakers will soon meet in Beijing to discuss 2022’s economic priorities and set growth targets.
“‘What can China rely on to stabilise its macro economy’ is a question that must receive particular attention,” he said at Caijing business magazine’s annual conference.
Premier Li Keqiang, China’s No 2 figure who generally announces annual economic targets in March, acknowledged the growing downward pressure during his meetings with entrepreneurs and provincial governors earlier this month.