Daily commentary: More Chinese stimulus in the works

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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