{"id":7123,"date":"2019-02-05T01:04:53","date_gmt":"2019-02-05T01:04:53","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/china-banks-on-lending-to-ease-slowdown\/"},"modified":"2019-02-05T01:04:53","modified_gmt":"2019-02-05T01:04:53","slug":"china-banks-on-lending-to-ease-slowdown","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/china-banks-on-lending-to-ease-slowdown\/","title":{"rendered":"China banks on lending to ease slowdown"},"content":{"rendered":"\n
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Build stuff or buy stuff? China has long been a believer in the former to deal with a slowdown in its economy. Now it’s trying to shift the emphasis to the latter.<\/p>\n

This year will be a big test of how far it’s come in the transition from state-backed investment to domestic consumption as the main driver of growth.<\/p>\n

China’s President Xi Jinping has warned of a “struggle” as his country faces an economic slowdown<\/a>, the likes of which it hasn’t seen for almost 30 years. <\/p>\n

A series of stimulus measures have been unveiled by the government not to boost the economy, but to manage the slowdown.<\/p>\n

“China’s goal is not growth, it’s stability,” says economist Andy Xie. <\/p>\n

“The option for stimulated growth again, that is not on the table. The debt level is simply too high, not like in 2008.”<\/p>\n

‘Less room to manoeuvre’<\/h2>\n

China’s debt has doubled in the aftermath of the global financial crisis 10 years ago, to around 300% of the size of its economy. <\/p>\n

“The level is so high now it’s not easy to move the economy,” Mr Xie says.<\/p>\n

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\n Economist Andy Xie says China’s debt levels limit its options
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Whether it wants to borrow more to build, or to encourage people to buy, he thinks China’s ruling Communist Party has far less room to manoeuvre. <\/p>\n

“It’s not easy to move the needle when the base is so large,” he says.<\/p>\n