Barclays expects policy continuity, not drastic turns, following the conclusion of China's 18th National Party Congress. "The key economic challenge for the new government is to prevent China falling into the middle-income trap, by sustaining sufficiently high growth and transforming the country into a high-income economy," it says. The house tips three main factors that influence economic policymaking in China: institutions; social and economic conditions; policymakers' personal styles. "This dynamic implies that continuity, rather than drastic turns, will be the dominant policy direction after the Party Congress." Barclays expects the government to introduce some new investment projects and expand some policy experiments; "Over the long run, we think the new government will also focus on urbanisation and state sector reforms. But more systemic and deeper reforms will take time to be implemented."
Find us on Google+
No comments:
Post a Comment