Is Australia’s Red Knight riding to the rescue again? From the FT:
China has unveiled measures to boost its sluggish economy, in the strongest indication yet of the leadership’s concern about the slowdown and one that also underscores a shift in Beijing’s approach to managing its economy.
The “mini stimulus”, though limited in size, could herald more policy moves to prop up growth. The government will eliminate taxes on small businesses, reduce costs for exporters and line up funds for the construction of railways.
Unlike 2008 when China deployed a gargantuan stimulus package to fend off the global financial crisis, it is instead using a series of targeted reforms to reduce the power of the government and give companies more space to operate.
The State Council, China’s cabinet, said late on Wednesday it hoped to “arouse the energy of the market”.
…“You can call this a mini-stimulus. It’s quite small but it’s on the supply side, and that’s more efficient,” said Lu Ting, an economist with Bank of America Merrill Lynch
In announcing the reforms, the State Council said the economy was in reasonable shape but that it needed to push forward reforms to “stabilise growth”.
The Western media needs a new word. This is not stimulus, it’s reform.
