China Economic Policy

By: EconomyWatch   Date: 14 October 2010

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As of now China is going through a tough economic phase and a way out of this problem is initiation of some comprehensive China economic policy that does away with weaknesses in national economic system.


Hu Jintao, president of China believes that a Strong Chinese economic policy would be necessary in order to help China adjust to aftereffects of global financial bust. According to him some useful economic policy of China is required in order to buck present global financial trend.

Hu has reiterated that prospects of economic growth of China were being hampered as a result of world economic meltdown. If China’s economy were to progress it would take a decent economic policy in China.

At present, a very important part of economic policy at China is increasing of demand among consumers within China’s domestic market. China is also looking to procure some sort of stability in levels of external demand so that some sort of economic balance could be achieved.

In last couple of decades this is lowest rate of economic growth for China. In final quarter of 2008 rate of economic growth of China was 6.8 percent. In last ten years rate of growth has normally been in excess of 10 percent. As per Hu Jintao a concrete China economic policy would be necessary in order to improve this situation.

Export and manufacturing sectors are at center of latest China economic policy as they have been hit hardest by global financial downturn. At least 20 million people have lost their jobs. Chinese government is worried about possibilities of social upheavals.

As part of China economic policy, a spending package worth $580 billion had been announced in November 2008. This money would be spent till end of fiscal 2010 in order to deal with ongoing world monetary crisis.

However, Wen Jiabao, prime minister of China has opined that even better China economic policies would be necessary in order to tide over present scenario of economic problems. Some new moves are being considered such as increase in investment by government, widening scope of social security benefits for common Chinese people and fresh schemes of industrial revival in China.


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