At the annual legislature session this month, Premier Li Keqiang insisted that the Chinese government had “more tools in our toolbox” to fight flagging growth. This was prefaced with an outline of further deficit spending to keep the country on target. Perhaps contrarily to CBB’s CEO Leland Miller’s statements at W&L, the Chinese Government is worried that slowing growth could negatively impact the job market. The Premier also mentioned deregulation in licensing as a method of encouraging small business growth.
Adam Slater of Oxford Economics commented on whether or not the Chinese government could really reverse the trend of slowing growth. The weak global economy and domestic housing market are reasons for concern. Additionally, demand for credit has been falling, which tends to lead to decreased consumption.