China’s economic policymakers expected to implement ‘more pro-growth policies’ after high-profile March meetings
- China’s monetary authorities have already been supporting growth by cutting the reserve requirement ratio and by expanding access to credit for small businesses
- Narrowing interest rate gap with the United States poses an economic risk to China, but Beijing has the tools to minimise the impact, according to analysts
As the economic policies between the United States and China continue to diverge, Beijing has an arsenal of tools at its disposal to cope with subsequent shocks, according to experts.
Among the concerns that could pose a risk to China’s economy, they say, is the narrowing interest rate gap between the world’s two largest economies and capital inflows.
These issues were thrust back into the limelight this week as finance leaders from the Group of 20 (G20) – the world’s top economies, including the US, China and some European nations – gathered for talks in Indonesia’s capital, Jakarta.
Pressing issues on their agenda include geopolitical risks posed by the Ukraine crisis; the need to revive a global economy that is still reeling from the impact of the pandemic; soaring inflation levels; and the tightening of monetary policies in some regions.
But some investment analysts say China’s policymakers have leeway in controlling the nation’s economic recovery and coping with uncertainties.
