Comment on China released a blitz of stimulus measures to boost its economy. Now begins the balancing game.

China released a blitz of stimulus measures to boost its economy. Now begins the balancing game.

Xi is walking a careful line to encourage the economy without overheating it.Li Xueren/Xinhua via Getty Images; iStock; Rebecca Zisser/BIChina's top leaders have unleashed a stimulus blitz to reverse the economic downturn and boost market confidence.Skeptics say it's just not enough for the scale of China's problem.However, some economists say that since China is a top-down system, officials will do everything they can to make it work.China unleashed a stimulus blitz on September 24, jolting the markets to try to reverse the previously downbeat narrative on the world's second-largest economy.Right from the start, skeptics said it's just not enough to fix China's problems, which include an unprecedented property downturn, deflation, and a crisis of confidence, among other issues.But it's likely not the last economy-boosting package, said some economists, because China is a top-down system — and the boss has called for it."As saving the economy and rescuing stock markets become politically correct, officials could jump on the bandwagon to display their loyalty," economists from Japanese bank Nomura wrote in a Wednesday note.Various Chinese ministries and local governments are likely to roll out a variety of stimulus measures in the coming weeks — useful or not, they added.

 

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