China needs to consider the costs of its emergency coronavirus stimulus and prepare to scale back support in a timely manner, according to a top researcher in Beijing.
Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China. In 2008, China unleashed a 4 trillion yuan spending package in response to the global financial crisis, which led to a mountain of debt and wasteful spending – something Beijing is keen to avoid this time around.
Larry Hu, chief China economist at Macquarie Capital, said the central government would likely keep its current policy stance largely unchanged. China’s Vice-Premier Han Zheng said on Friday the government would not use the property market as a form of short-term stimulus to prop up the economy.