It’s Urgent for China to Enhance Monetary Policy and Take Other Measures to Tackle Multiple Challenges Facing Economic Recovery, Chinese Government-Run Economic Daily Says

On May 29, Economic Daily, which is governed by China’s State Council, pointed out that despite the rapid growth of investment, the current investment structure is unbalanced, consumption growth is lower than expected, and the export situation is grim. China's sustained economic growth still faces some problems that need to be solved, mainly reflected in insufficient fixed asset investment, low passion in real estate investment, and weak profitability of industrial enterprises. To this end, it is necessary to take measures from multiple perspectives. Monetary policy still needs to be further strengthened so as to provide continuous impetus for high-quality economic recovery. First, maintain a moderately ample monetary environment to ensure that the growth of money supply and total social financing is compatible with the needs of national economic growth. Second, make good use of structural policies such as differential RRR, refinancing, and rediscount rates. Third, strengthen the coordination of monetary policy, fiscal policy and industrial policy. Finally, promote high-level financial opening, strengthen international financial cooperation and monetary policy coordination. Take precautions to mitigate the negative impact of US monetary policy spillovers. Maintain the basic stability of the RMB exchange rate.