Restoring confidence and stabilising the property market are \u201csignificantly more important\u201d for China than the ramifications of tariffs, a Nobel laureate in economics said while warning of financial risks to Chinese households.<\/p>\n
Michael Spence<\/a>, who won the Nobel Prize in 2001, made the remarks at the Hongqiao International Economic Forum in Shanghai on Thursday, during a panel discussion on China\u2019s pathway to revitalise consumption.<\/p>\n While acknowledging that Beijing needs to \u201cseriously\u201d address tariff frictions, the 82-year-old Canadian-American said such external factors were of \u201csecondary importance with respect to restoring momentum in the Chinese economy\u201d.<\/p>\n \u201cStabilisation of the real estate sector, the financial sector that\u2019s related to it, [and] restoring confidence and momentum are significantly more important than whatever impacts the tariffs are having,\u201d said Spence, who is also a Philip H. Knight professor and dean emeritus at Stanford University\u2019s Graduate School of Business.<\/p>\n His comments came as the world\u2019s second-largest economy prepares to enter its 15th five-year phase<\/a> (2026-2030), a period in which external risks such as tensions with the United States, as well as domestic headwinds \u2013 including sluggish demand, a prolonged property downturn<\/a> and persistent deflationary pressures \u2013 are expected to test Beijing\u2019s policymaking.<\/p>\n During the forum \u2013 a high-level dialogue platform that runs alongside the China International Import Expo to discuss and promote global economic cooperation, trade and investment liberalisation \u2013 Spence also stressed the need for China to avoid \u201cdamage to household balance sheets\u201d, which have been eroded in part by falling property values.<\/p>\n I believe the overall direction of our current consumption policies is sound<\/p><\/blockquote>\n Liu Yuanchun, Shanghai University of Finance and Economics<\/p>\n","protected":false},"excerpt":{"rendered":"Restoring confidence and stabilising the property market are \u201csignificantly more important\u201d for China than the ramifications of tariffs,…\n","protected":false},"author":2,"featured_media":556956,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[3801,51,1395,177878,87927,1700,171084,177880,141691,150098,177879,50504,24170,10741,177877,479,16,15,49],"class_list":{"0":"post-556955","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-beijing","9":"tag-business","10":"tag-china","11":"tag-china-international-import-expo","12":"tag-chinese-economy","13":"tag-economy","14":"tag-financial-risks","15":"tag-hongqiao-international-economic-forum","16":"tag-household-income","17":"tag-liu-yuanchun","18":"tag-michael-spence","19":"tag-nobel-prize","20":"tag-property-market","21":"tag-shanghai","22":"tag-shanghai-university-of-finance-and-economics","23":"tag-tariffs","24":"tag-uk","25":"tag-united-kingdom","26":"tag-united-states"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115513377891241684","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/556955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=556955"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/556955\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/556956"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=556955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=556955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=556955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}