Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

China Ex-Finance Minister Says It’s Time to Consider Exiting Stimulus, Caixin Reports

Forex Nov 13, 2020 04:18AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. China Ex-Finance Minister Says It’s Time to Consider Exiting Stimulus, Caixin Reports

(Bloomberg) -- China’s ex-finance minister said it’s time to consider withdrawing the monetary stimulus injected into the economy this year and fine-tune fiscal policies as the recovery strengthens, according to a report by Caixin.

“It is time for China to study an orderly exit of loose monetary policies,” Caixin quoted Lou Jiwei, who was finance minister from 2013 to 2016, as saying at the Caixin Summit in Beijing Friday. That doesn’t mean it would be an immediate exit, he added.

The challenge is to carefully manage the pace of the exit, Lou said, given high debt levels in the economy. If liquidity is withdrawn too soon it could trigger debt crises, he said.

On fiscal policy, Lou said stimulus should be maintained at its current pace and be made less expansionary next year. Fiscal policies are usually medium-term and it takes a longer time to exit them compared to monetary policies, he said.

China’s economy has staged a steady recovery, benefiting from a rapid resumption in industrial production and robust exports. With virus cases under control and household income improving, consumption has also started to catch up.

Liu Guoqiang, vice governor of the People’s Bank of China, said last week that policy makers globally are discussing the timing of stimulus withdrawal and that an exit was a “matter of time.”

Lou also said at the Caixin Summit that U.S.-China relations are unlikely to get much better in the near term under a Joe Biden presidency. The U.S.’s curbs on China’s development is inevitable, he said.

 

China Ex-Finance Minister Says It’s Time to Consider Exiting Stimulus, Caixin Reports
 

Related Articles

Dollar edges up in range-bound holiday markets
Dollar edges up in range-bound holiday markets By Reuters - Nov 25, 2022

By Saqib Iqbal Ahmed NEW YORK (Reuters) - The dollar edged higher across the board on Friday in a quiet session following the U.S. Thanksgiving holiday but remained near...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email