Beijing warns of ‘policy addiction’, signalling preference for targeted stimulus
With an eye on long-term stability, People’s Daily says officials have tools to respond amid weak demand, property risks and local-government debt
In its third consecutive commentary defending China’s economic resilience, Communist Party mouthpiece People’s Daily emphasised that Beijing was prioritising targeted measures over aggressive stimulus to avoid a potential over-reliance on policy support, while also reiterating confidence in reaching the nation’s economic targets for the year.
“China has not taken the path of overrelying on strong policy stimulus,” the piece said. Instead, the commentary added, targeted interventions would function like “acupressure” to address specific vulnerabilities and avoid creating a “policy addiction”.
The commentary was published on Monday under the pen name “Zhong Caiwen”, a byline widely believed to be associated with the Central Financial and Economic Affairs Commission, a key economic decision-making body headed by President Xi Jinping.
At the same time, the article noted that China’s macroeconomic policy toolkit remained ample, with substantial room for countercyclical adjustment, allowing Beijing to roll out additional measures as conditions evolve and meet its annual targets.
In highlighting the resilience of China’s economy, the commentary pointed to the ability to absorb external shocks and adjust to domestic risks. It said early investment in a new-energy system and oil reserves, along with diversified sourcing, had helped maintain energy supplies despite the US-Israel war on Iran, which has sent oil prices higher.