Famous Chinese economist Guan Tao authored a commentary which Beijing News recently published. The commentary started by advising that stabilizing economic growth should depend on reforms and adjustments, instead of stimulation. Guan’s recommendation was made in the context of the annual Central Government Economic Work Conference, which normally takes place near the end of the year, deciding the critical plans for next year. Guan proposed that the government has no need to forcibly keep the six percent GDP growth rate in order to maintain economic stability. With its great potential, the Chinese economy may continue to slow down next year. Using this year’s growth rate as next year’s “red line” is not reasonable. It is perfectly acceptable, given the size of the Chinese economy, to have a slower growth rate, as long as the investments into improving people’s living quality and job security are sufficient.
Source: Beijing News, December 11, 2019