Attempt to boost demand stifled by wall of austerity


New moves: A bull statue in Shanghai. The government appears to be breaking with its usual practice of funding infrastructure to stimulate the economy. — Bloomberg

Beijing: Finance chiefs in Beijing are testing new ways to boost the economy by encouraging demand, breaking with long-established practice as threats to the country’s growth target mount.

The trouble is, this embrace of a more expansionary policy in China’s capital is effectively getting cancelled out in the provinces – where authorities are in full belt-tightening mode.

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