Coping with COVID-19 – China Office 06 April 2020
China’s economy had already been slowing since 2010, with growth reaching 6.1% in 2019. Economic growth rates in China were boosted in 2009, thanks to the RMB4 trillion stimulus package and laxer lending restrictions in response to the Global Financial Crisis (GFC). At that time...
China’s economy had already been slowing since 2010, with growth reaching 6.1% in 2019. Economic growth rates in China were boosted in 2009, thanks to the RMB4 trillion stimulus package and laxer lending restrictions in response to the Global Financial Crisis (GFC).
At that time, it was forecast that growth would slow to 5.9% in 2020. Slower growth was a result of the ongoing trade war with the US, which saw tariffs applied to US$550 bn worth of Chinese imports, and the government’s attempts to control China’s debt situation and reduce financial risk. Nevertheless, there were signs that things were turning a corner at the beginning of 2020 with a Phase 1 trade deal in place, an opening up of financial markets and reforms and investment in China’s 2025 industrial policy.
