China has no immediate need for aggressive stimulus packages to support growth unless China-US trade tension weighs on growth more visibly. For now, patience and policies are what's needed for market-oriented, longer-term reform and opening-up, a senior economist told China Daily in an exclusive interview.
Given the unpredictable nature of the trade friction, macroeconomic policies should be prepared to support the economy, especially if growth slows, according to Huang Yiping, deputy dean of the National School of Development, Peking University.
"But adoption of (over-aggressive) macro-polices should be refrained," Huang told China Daily last week, adding that there is no need to repeat 2009's stimulus package. "Because it could lead to negative consequences, including excessive production capacity, inflation and asset bubbles," said Huang, who is also a former member of the central bank's monetary policy committee. |