I think many people will have the same question, how is China now? I’d like to share my views. To be honest, the current Chinese economy is indeed facing great difficulties under the repeated impact of the pandemic, especially in 2022. We must admit and face this point in a practical and realistic way, but we must not remain indifferent. We must find ways to cope with it. So what I’ve learned is that China is using three ways to get out of this mess.
First, we will pursue macro policies. I think it should be understood that due to the downward pressure on the economy, many enterprises, including real estate development enterprises, have encountered liquidity difficulties. The difficulties in business operation in the history and the current macroeconomic downturn meet, resulting in liquidity crisis. In this case, an expansionary monetary policy is instead a stabilizing policy. To stimulate effective macroeconomic development by continuing to increase real government spending and the active expansion of monetary policy; Second, we will focus on investment and industry. Mainly in infrastructure and new energy industry input; Third, we will pursue reform. The first is entrepreneurs, especially private entrepreneurs. We should try every means to restore their confidence in investment and development. The second is the government workers who control economic decisions. According to government and market economics, we need to reactivate the initiative of government workers in local governments and central economic departments to keep their behavior in step with the development of the modern market economy. It is to mobilize the enthusiasm of all aspects of society, so that all social strata can get due returns in line with their expectations in participating in market economy activities, and achieve common prosperity.
In the face of major changes in the global economy and the COVID-19 pandemic, China should not only improve its macro policies and investment, but more importantly, seriously reshape its reform mechanism.
Post time: Sep-13-2022