China urged to take immediate action to halt economic downward spiral, propping up ‘effective demand’ key
- Economists hit back against ‘bit by bit’ policy implementation and warned that economic cooling would be detrimental for the nation
- Propping up demand is key, while direct subsidies should also be distributed to consumers, top economists said
China needs a new playbook with resolute actions and clear signals to stem the downward spiral and reverse pessimism within the private sector, top economists said.
Beijing needs to “immediately” stop China’s economy from going into a downward spiral by implementing stronger measures that prop up “effective demand”, said Yin Yanlin, deputy director of the economic affairs committee of China’s national political advisory body.
“The key is to prop up overall demand,” Yin said.
“Problems with unemployment, inflation, economic growth and risk defusing all depend on a rebound in domestic demand,” he told an economic forum hosted by Tsinghua University on Saturday.
[The government] should be firm on launching strengthened policies, instead of making adjustments bit by bit
Yin stepped back from his role as deputy director of the office of the Central Financial and Economic Affairs Commission – a key economic decision-making body- and joined the Chinese People’s Political Consultative Conference’s economic committee in March.