Last week, the People’s Daily carried a long question and answer “interview” with an unnamed “authoritative” source, repudiating the country’s debt-fuelled growth policies, followed by the text of a speech by Xi Jinping expounding his hallmark economic policy, which focused on supply-side structural reforms. According to the South China Morning Post, the articles signal that Xi has decided to take the driver’s seat to steer China’s economy as leaders debate whether to continue deploying stimulus or undertake painful restructuring to reduce overcapacity. They largely repudiated Premier Li Keqiang’s economic strategy, and followed first-quarter economic data which showed the country released a record RMB 4.6tn worth of bank credit, exceeding even the 2009 financial stimulus.
China Economic Review