Economy

China to step up economic stimulus in slowdown fight

China to step up economic stimulus in slowdown fight

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.”


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