China entered 2025 with a boost in economic activity. Officials are prepared to roll out more support if growth slows.
Economic Upturn and Stimulus Development
China's September 2024 stimulus has stabilized the economy. According to Huang Yiping, a monetary policy adviser to the People's Bank of China, the main goal now is to boost business and household confidence. He noted the government is ready to step up measures if necessary.
Monetary Policy Amid Sluggish Local Demand
Despite promises of a 'moderately loose' monetary policy, China avoids aggressive moves like interest rate cuts or major liquidity injections. The People's Bank of China focuses on defending the yuan, keeping it within stable ranges. Huang also warned against weakening the currency to boost exports.
Criticism of China's Trade Surplus on the Global Stage
Charlene Barshefsky, former US Trade Representative, criticizes China's large trade surplus as a global issue. She believes China exploits manufacturing and suppresses domestic consumption, relying on exports for economic growth. In today's conditions, such strategies are becoming less effective, requiring reevaluation in both China and the US.
China faces challenges in internal and external economic policies. While the economy is stable, officials are ready to act quickly in response to changes.
