Source:
https://scmp.com/comment/opinion/article/3042224/chinas-economic-planners-should-be-talking-growth-not-resigning
Comment/ Opinion

China’s economic planners should be talking up growth, not resigning themselves to a slowdown

  • While China’s planners will no doubt institute more structural reforms and improve supply-side investments, they should boost expectations by aiming for a 6 to 7 per cent growth target
Villagers work on drying bamboo products in bunches for making chopsticks in Lijiang county in Jiangxi province in China on October 11. China has cut domestic interest rates and eased borrowing costs for consumers and business to spur growth. Photo: Reuters

China has its work cut out for it bucking the trend towards slower growth in 2020. With economic expansion hitting a nearly 30-year low of 6 per cent in the third quarter, China’s planners seem to have a daunting task ahead of them. Hopes may be rising for an early end to the US-China trade war, but there is a long way to go on the road to recovery. World trade flows are slowing, global growth is suffering and China’s economy has felt the pinch.

Until the trade picture improves, there’s a lot Beijing can do to speed up domestic demand. Beijing has all the resources it needs for faster recovery, but just needs to tap into them with greater aplomb. More monetary and fiscal policy reflation is definitely on the cards in 2020.