People’s Daily reported that, during the 2016 China Development Forum currently being held in Beijing, Lou Jiwei, China’s Minister of Finance, commented on Moody’s recent downgrade of its rating on China. Lou said that China does not particularly have a problem with the downgrade, even though it understands the agency’s concerns about the local debt in China. As to whether China can reduce its current capacity and overcome issues while going through structural reform, Lou said that China didn’t have any policies in place when Moody’s issued the downgrade but, since then, China has decided to spend one trillion yuan (US$150 billion) on capacity and inventory reduction, which shows its confidence in dealing with the issues.
Source: People’s Daily, March 20, 2016
http://finance.people.com.cn/n1/2016/0320/c403268-28212252.html