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iday — the annual East Asia Summit foreign ministers’ meeting, which brings together dignitaries of 18 countries — all 10 ASEAN m
上海千花网品茶微信embers, China, Japan, ROK, the United States, Australia, New Zealand, Russia and India.
At the gathering, Wang called on parties involved to secure the multilatera
l trading system with the World Trade Organization at its center, and said un上海千花网
ilaterally imposed sanctions or additional tariffs are not helpful to resolving of trade issues.
Thai Foreign Minister Don Pramudwinai said that bolstering free trade was mentioned throughout the discussions.
上海千花网品茶微信After the conclusion of an important meeting of the Commu
nist Party of China Central Committee, the participants said China seeks to make its fiscal policy more eff
ective and maintain “reasonably ample” liquidity. And instead of resorting to a stimulus in the real estate market, Ch上海千花网
ina will lay emphasis on “proactive fiscal policy and prudent monetary policy”.
It is a challenging balancing act, but the right stance at the right time.
上海千花网品茶微信Meanwhile, White House pledged to impose an additional 10 percent tariff on Chin
ese imports to the US, which caused US stocks to tank 280 points. The White House needs a scapegoat as the Fed cuts can
not offset Trump’s tweet policies, US growth is slowing and a slowdown is looming in 2020.
The CPC Central Committee seeks to avoid targeted but costly stimulus polic上海千花网
ies, which could exacerbate new risks of asset bubbles over time, while ensuring adequate fiscal support. Since in
frastructure investment remains relatively soft by historical standards, fiscal easing on investment is likely in the s
上海千花网品茶微信econd half of the year. And it could be tilted toward small enterprises and startups.
This year’s growth to be within range
Moreover, fiscal easing is likely to be coupled with monetary support, including cuts in the banks’ reserve r上海千花网
equirement ratio. Although the fiscal easing tilt could cause downward pressure on Chinese bond yields and co
rporate spreads in the near future, the big picture suggests stabilization and resilience.
上海千花网品茶微信In the second quarter, the Chinese economy grew 6.2 percent compared with 6.4 percent in the
first quarter, but that was hardly surprising in view of the global challenges. China’s econ
omic growth is within the target range of 6 percent to 6.5 percent set by t上海千花网品茶微信
he government. Indeed, a growth rate of 6.2 percent for the whole of 2019 rema
ins achievable even if growth stabilizes around 6 percent to 6.2 percent in the second half.