Fine-tuning of economic policy may not be enough to bolster China’s economic growth and stronger stimulus measures may be necessary in this “critical” period, according to state newspaper the Global Times.
“In 2008, the Chinese government announced a RMB 4 trillion ($578 billion) stimulus package to fight the impact of the global financial crisis. Now, the Chinese economy is under even tougher pressure amid escalating trade friction,” it said.
“Beijing must draw up strong stimulus policies to inject new momentum into the real economy.”
The comments come just days after China’s central bank announced plans to inject RMB 1.2 trillion into the economy through a further cut to banks’ reserve requirement ratio. The move did not assuage investors, however, as Chinese stocks fell to their lowest in almost two years following the news.