China Has ‘Very Big' Policy Room to Spur Growth, Central Bank Adviser Says
China wields significant policy room to stimulate its economy this year while some reform was needed to boost consumption, Huang Yiping, an advisor to China's central bank and a professor at Peking University, said on Wednesday.
China has unveiled fresh fiscal measures, including a rise in its annual budget deficit, to help hit an economic growth target of around 5% this year, which analysts have described as ambitious. The central bank has pledged to cut interest rates and pump more money into the economy at an appropriate time.
"There is still very big space in terms of macro policies," Huang told Reuters on the sidelines of the annual Boao forum.
Macro policies will help tackle cyclical problems, while some structural challenges could be resolved in the future, he said.
Some reform measures, including those to increase people's incomes and confidence, are needed to boost consumption, on top of recent moves unveiled by the government, Huang said.
Peng Sen, chairman of the China Society of Economic Reform, told the Boao Forum on Tuesday that China should take steps to boost consumption as a share of gross domestic product to 70% by 2035 from around 55% currently, narrowing the gap with developed nations.
Wider structural reforms include changes in institutional frameworks, income distribution, and fiscal and taxation systems will be needed to help boost spending, Peng said.
The Boao Forum, an international summit seen as Asia's version of the World Economic Forum in Davos, Switzerland, is being held in China's Hainan province from Tuesday through Friday.
Policymakers have put expanding domestic demand, especially consumption, as the top priority this year as they try to cushion the impact of the Trump administration's tariffs on its crucial export engine.
Huang also told the forum that globalization, which has benefited many Asian economies, could be reversed.
"Many of the most successful economies in the last half century or more, like East Asian economies - China and so on -all benefited from globalization, but there is certainly a risk that the US-led globalization may be reversed," Huang said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asharq Al-Awsat
13 hours ago
- Asharq Al-Awsat
Swiss National Bank Denies Currency Manipulation after Being Put on US Watch List
The Swiss National Bank does not engage in currency manipulation, the central bank said on Friday, after the United States added Switzerland to a list of countries being monitored for unfair currency and trade practices. "The SNB does not engage in any manipulation of the Swiss franc," the SNB said after the publication of the US Treasury Report on Thursday. "It does not seek to prevent adjustments in the balance of trade or to gain unfair competitive advantages for the Swiss economy," it added, according to Reuters. The SNB said it remained in contact with US authorities to explain Switzerland's economic situation and monetary policy, and would continue to use interest rates and forex market interventions to pursue its inflation target. The central bank declined to say whether further talks with the United States were planned, but said it acted in the interests of Switzerland, where it aims to keep annual price increases within a band of 0-2%. "Our monetary policy is geared towards the needs of Switzerland," the SNB said.
Asharq Al-Awsat
2 days ago
- Asharq Al-Awsat
China Increases Scrutiny of Rare Earth Magnets with New Tracking System
China has introduced a tracking system for its rare earth magnet sector, three sources said, as its export restrictions on them begin to cut off customers around the world. The national tracking system, which went into effect last week, requires producers to submit extra information online including trading volumes and client names, said two sources familiar with the matter and another briefed by those involved. The world's largest rare earth magnet supplier and exporter, China in early April imposed export restrictions on seven medium to heavy rare earth elements and several magnets, requiring exporters to obtain licenses, Reuters said. Delays getting approvals have upended supply chains for automakers, semiconductor companies and others, with global automakers already beginning to stop some production lines as reserves run out. Beijing unveiled high-level plans to establish an information tracing system for rare earth products last June, but there had been no implementation until last week, according to the source briefed on the matter. The added level of scrutiny suggests that China's export controls on rare earths and the associated magnets - where it has a near-monopoly on production - could become a permanent feature for the products. There have been hopes in the US and elsewhere that this would be removed as part of a trade truce agreed in Geneva last month. In previous cases where China has imposed export curbs on metals, exports have tended to slowly rebound after the imposition of restrictions as exporters apply and receive licenses. "Our current hypothesis is that China would continue its export control mechanism on rare earths, as its an ace card for China to hold," said Tim Zhang, founder of Singapore-based Edge Research. Beijing's long-term target is to track the whole rare earth production chain, not just magnets, strengthen its control over the sector, and crackdown on smuggling, illegal mining and tax evasion, according to a fourth source who was also briefed on the matter.
Al Arabiya
2 days ago
- Al Arabiya
Amazon prepares to test humanoid robots for deliveries: Reports
Amazon is developing software for humanoid robots that could eventually take over the jobs of delivery workers, The Information reported on Wednesday, citing a person familiar with the matter. Reuters could not immediately confirm the report. Amazon is reportedly completing construction of a 'humanoid park,' an indoor obstacle course at one of the company's San Francisco, California offices, where it will soon begin testing such robots, the report added. The company is developing the artificial intelligence software that would power the robots, and for now plans to use hardware from other companies in its tests, the report said. Amazon did not immediately respond to a request for comment outside its regular business hours. In a series of announcements on Wednesday, Amazon showcased how stockroom robots, delivery personnel and its massive warehouses will all benefit from a significant infusion of AI, accelerating the process of getting packages to customers' doorsteps.
