Category: G20 / Global

the main focus for observers of the Chinese economy n the coming months and quarters should not be on the overall size of the stimulus package but on the nitty gritty details pertaining to the allocation of government-backed funds across sectors and geographic areas. In the context of an intensifying trade and technological war, a significant part of the effort could be geared toward insuring that productivity gains will be preserved in the post-Covid era by investing in Industry 4.0 and high tech ventures. Another area of focus is the need to reduce social inequalities – a subject that has been taboo for years if not decades in the wake of China’s transition to a market based economy – and supporting the build-up of an ambitious and comprehensive social safety net – targeting the rural population and migrant workers – that could increase social cohesion and preserve political stability in the years to come.