China may adjust some economic stimulus policies

On the occasion of the upcoming National Conference, the specific details of China's macroeconomic policy this year, whether the package of monetary and fiscal stimulus plans will be adjusted, has become one of the topics of great concern at home and abroad. Although Chinese policymakers have repeatedly reiterated that they will continue to implement a proactive fiscal policy and a moderately loose monetary policy. But economists said that in addition to maintaining continuity and stability, China's macroeconomic policies will fully reflect the pertinence and flexibility, and adjustments to some economic stimulus policies will be grounded.
The emergency package of economic stimulus plans helped the Chinese economy to withstand the impact of the international financial crisis and entered the recovery track, but it also had some side effects in other areas. "Under the stimulus policy, there has been some overheating in the Chinese real estate market, and prices have risen rapidly, accumulating a certain bubble." Lu Feng, deputy director of the China Center for Economic Research at Peking University, said. "The stimulus plan is a great achievement, but the government's choice of 'delisting' can't be avoided, it's just a matter of timing and tool selection," said Qin Xiaori, chairman of China Merchants Bank.
Analysts pointed out that this year's "Government Work Report" will make specific arrangements for investment, will strictly control new projects, focus on safeguarding projects under construction, manage the expansionary inertia of finance and credit, and focus on promoting fiscal and monetary investment. Economic structure and industrial restructuring, promote the development of low-carbon economy and green economy, and "accelerate" the transformation of economic development mode.
Ba Shusong, deputy director of the Financial Research Institute of the Development Research Center of the State Council, said: "From the very policy of the extraordinary state in 2009, the smooth transition to the normal policy under normal conditions is a Chinese-style balance with Chinese wisdom."
Since the second half of 2009, the Chinese government has taken measures to rebalance the economic structure and stimulate domestic demand. Observers believe that the policy intensity is expected to increase further in the next few years. Policy makers stressed that it is necessary to increase the adjustment of national income distribution, gradually increase the proportion of household income in national income distribution, and increase the proportion of labor compensation in the initial distribution.
 

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