Are Chinese economists panicking about the country’s economy? Yin Yalin, deputy director of the economic affairs committee of China’s national political advisory body, is calling for propping up effective demand “immediately” after the Chinese economy has been “obviously losing momentum.” Kinling Lo discusses Yin’s comments in the South China Morning Post, writing:
China needs a new playbook with resolute actions and clear signals to stem the downward spiral and reverse pessimism within the private sector, top economists said.
Beijing needs to “immediately” stop China’s economy from going into a downward spiral by implementing stronger measures that prop up “effective demand”, said Yin Yanlin, deputy director of the economic affairs committee of China’s national political advisory body.
“The key is to prop up overall demand,” Yin said.
“Problems with unemployment, inflation, economic growth and risk defusing all depend on a rebound in domestic demand,” he told an economic forum hosted by Tsinghua University on Saturday.
Yin stepped back from his role as deputy director of the office of the Central Financial and Economic Affairs Commission – a key economic decision-making body- and joined the Chinese People’s Political Consultative Conference’s economic committee in March.
He described the Chinese economy as “obviously losing momentum” and facing “increasing risk”, and that it is “far away from” Beijing’s goal of seeing “an upturn”.
Yin said the government needs to adopt a stern attitude to cut negative circulation in the economy and correct outdated policies.
“[The government] should be firm on launching strengthened policies, instead of making adjustments bit by bit,” he added.
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