A former senior official from China’s Communist Party has called on the government to relax its monetary policy as domestic demand flags and a new wave of US tariffs on the way, the South China Morning Post reports.
Zheng Xinli, former deputy director of the Communist Party’s Central Policy Research Office told an audience at Renmin University that Beijing’s unwillingness to print more money is holding the economy back.
“We must fully play up the role of monetary policy in bolstering domestic demand,” said Zheng on the topic of potential impacts from Washington’s tariffs.
Whilst the central government has activated its fiscal policy since economic data began pointing towards a looming slowdown for the world’s second-largest economy, the central bank is still cagy with regards to lending, with soaring debt levels that sparked a national deleveraging drive lingering.