Policy direction in China

CHINA ADVISORY - Report 13 Aug 2021 by Andrew Collier

Faced with unusual challenges, including Covid and US-China decoupling, China is choosing to focus on four main policy areas. These are:

* Covid response.
* Macroeconomy.
* Regulatory environment (including US-China policy).
* The Property sector.

The choices the leadership makes in these areas will impact growth and overall economic policy for the remainder of the year. One of our conclusions is that economic divergence in provincial growth is going to be one way for the leadership to ration credit.

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