China should use policy space to boost disposable income, consumer confidence to prop up its economy: US report
- US Treasury department report suggests China should ‘prioritise measures’ to boost household disposable income and consumer confidence
- Report to assess the currency practices and macro policies of key trading partners is seen to partly reflects how Washington views China’s slowing economic activities
China should use “available policy space” to prop up its economy by building consumer confidence, lowering market barriers and reforming old practices, the US Treasury department said in a report last week, as the faltering growth of the world’s second-largest economy has weighed on the global prospects.
“China should prioritise measures to bolster household disposable income and consumer confidence through both direct fiscal support and structural reforms,” the department said in the report assessing the currency practices and macro policies of key trading partners, which was released on Friday.
Overseas worries have also increased about China’s slowing economic growth and what role it can play to support the global recovery.
China is the world’s largest buyer of Australian iron ore, crude oil from the Middle East, American corn and Brazilian soybeans.
The International Monetary Fund estimated in March that China will contribute a third of global growth this year, while the United States and Europe are still fighting high inflation.