China remains focused on reducing heavy debt through creating more jobs for the people. Despite changes in the economic environment due to China trade conflict against the U.S., the country is still strong-willed about it.
China increases by 6.8 percent first half this year. However, the pressure is still there due to the nation’s debt not to mention the trade hostilities of the United States. Because of this, China will be more concentrated to deepen the “structural supply-side reforms” on this year ‘s second half, President Xi Jinping said.
A researcher from the Chinese Academy of Social Sciences, Zhang Ming said that there “would not be any fundamental changes in China’s macroeconomic policy direction”. He added that any marginal adjustments to be made can bring sharp deceleration in terms of the economic growth of the country. However, despite the fact that it is a big risk still Beijing’s plan of action is still focus on the cutting debt levels.
Even though the statement did not mention the name of the U.S. President Donald Trump, still China is more focused on shoring up the nation’s defenses against the external shocks that will hinder its growth and development.
According to Ming, “new problems and new challenges” the country will still attempt to “stabilize employment, stabilize finance, stabilize foreign trade, stabilize foreign direct investment, stabilize investment, and stabilize expectations.”
One of the strategies is to implement a more active fiscal policy and to choose a more careful and responsible monetary policy stance proposing proper standardization of the country’s economic policies. The fiscal policy of China plays a very bigger and important role in domestic demands as well as the promotion of the structural adjustments. Hence, spending on project infrastructures whenever it is essential to the forthcoming development will be done.
Premier Li Keqiang said at the cabinet’s meeting on July 23 that China government would be dealing with a more proactive fiscal policy and will push forward to (US$198 billion) or 1.35 trillion yuan which is for the local government infrastructure projects.
