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In Depth: China Turns to Credit Easing to Kick-Start Sluggish Economy

By Peng Qinqin and Tang Ziyi
2022年04月05日 17:36
Credit demand has been declining while the rapid recovery from Covid-19 has begun to stutter
A concert was held to commemorate late singer Teresa Teng on May 9, 2015, in Taipei . Photo: VCG

As Beijing seeks to kick-start China’s sluggish economy with a jolt of fresh liquidity, credit easing is set to be its tool of choice.

“We will step up implementation of the prudent monetary policy,” said Premier Li Keqiang in his 2022 government work report delivered to China’s top legislature on March 5. “We will use monetary policy tools to adjust both the monetary aggregate and the monetary structure, so as to provide more robust support for the real economy.”

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