Yesterday I wrote about Chinese trade growth plummeting. This is having a negative impact on economic growth. The Chinese authorities get that. And so they have decided to boost demand. Yet more infrastructure stimulus is how the plan on doing it.
Andy Lees writes that the government has started a CNY26.5bn (USD4.2bn) program of subsidies to promote the use of energy saving household appliances in an effort to reduce energy consumption. This replaces a program that had ended last year. Further, the Chinese government is going to grant CNY6bn of subsidies for small engine cars purchases, again with the same goal of reducing energy consumption. This is small beer of course so the big news is that the Chinese are studying ways to boost domestic consumption while also pursuing more major in...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.