NDRC Commits to No “Irrigation-Style” Stimulus, Avoidance of Asset Bubbles

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China’s state planner has reiterated its commitment to refraining from excessive stimulus measures that potentially lead to the formation of asset bubbles.

The Chinese government work report for 2022 has set the ambitious target of 5.5% GDP growth this year, leading to concerns about the adoption of more concerted stimulus measures by Beijing.

Lian Weiliang (连维良), deputy-chair of the National Development and Reform Commission (NDRC), said that the Chinese central government would not engage in “irrigation-style heavy stimulus,” and that it would be capable of “effectively avoiding the negative effects that everyone is concerned about, such as declines in investment returns, industrial overcapacity, and asset bubbles.”

Lian made the remarks on 7 March at a State Council press conference.