Reuters exclusively reported that China will take steps to spur growth amid a trade war with the United States, but there is limited room for aggressive stimulus in an economy already laden with massive debts and a property market prone to credit-driven spikes. "The room for a strong stimulus is not big, and there are very big risks, because that will rely on a flood of cash and increased leverage in the economy," one policy insider told Reuters. Another adviser said "If there is too much liquidity, we should worry whether it may flow into unintended areas, rather than the real economy."
Politics
China to step up economic stimulus in slowdown fight
25 January 2019, 12:00 am 1 minute
Article Tags
Topics of Interest: Politics
Type: Reuters Best
Sectors: Economy & Policy
Regions: Asia