“China is experiencing its slowest growth in 25 years, but
the government is still holding fire on its giant stimulus bazooka”
In a press conference over the weekend, Zhou Xiaochuan,
governor of the People’s Bank of China, says that China will adopt a relatively
prudent monetary policy, as long are there are no major international or
domestic financial crises. Zhou expects that China will reach its economic
growth target without a distribution of any stimulus. These words align with
what has become the “new normal” for China, as economic growth slows in the
country. This should spark the interest of China’s worldwide competitors, as an
opportunity to advance to new markets may be possible with the slowdown of
China. Experts say, however, that the slowdown is needed so the China can move
the economy from manufacturing reliant to consumer spending reliant. Only time
will tell but it will be interesting to see what China’s next moves are, and
how other economies around the world will respond.
I am interested in what will happen with China in the future as well. This has been a crazy new year for China and definitely the slowest growth in 25 years, so it will be very interesting as to what will happen in a month, half a year, maybe even 5 years!
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