Investors, exporters urge more aggressive approach from China despite stimulus onslaught
Investors and international exporters are holding off on new investments despite Beijing’s slew of stimulus measures
As Beijing strives to revive its economy with a slew of stimulus measures, private and foreign entrepreneurs remain cautious about their investment strategy in China, calling policies too narrow and insufficient to revive confidence amid economic headwinds.
Private investors and international exporters said they were holding off on new investments or shifting focus overseas, pressing for more “tangible” and “broader-based” actions.
“The Chinese government needs to take more tangible and comprehensive actions, rather than simply offering financial adjustments, which are often more notional than practical,” said Deepak Khanna, vice-president for the Asia-Pacific region at Indian home appliances company Usha International.
But while reiterating the central government still had “room” to raise debt and the fiscal deficit, the finance ministry did not reveal any broad-based stimulus measures.
What’s needed is a broader approach that prioritises international trade, deepens ties with partners like India, and strengthens domestic financial institutions
But Khanna said relying on treasury or local government bonds – which ultimately draw on public funds – was insufficient to drive sustainable growth.