China’s top banking regulator has touted ongoing low inflation relative to other major economies as proof of the effectiveness of the Chinese economic system.
“Compared to developed nations, where inflation hit a forty-year high last year, China’s consumer prices have remained at around 2% for ten consecutive years,” said Guo Shuqing (郭树清), party secretary of the Chinese central bank and chair of the China Banking and Insurance Regulatory Commission (CBIRC), in a recent interview with state-owned media.
“This fully attests to the superiority of China’s socialist system, and the effectiveness of macro-economic controls.
“We are strengthening supply guarantees and price stabilisation for key areas including food and energy, while also implementing steady, normalised monetary policy, and firmly refraining from ‘flood-style irrigation,’ in order to maintain price stability and operate an excellent monetary and financial environment.
“We will remain highly aware of the latent potential for an inflationary rebound. Given that at present overseas inflation is still riding high, it will be easy for this to be transmitted to China via links including production and circulation.
“We must maintain a high level of alert in this regard.”