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China's Macroeconomic Balancing Act: Shifting to New Drivers of Growth and Sustaining Financial Stability
Author(s) -
Huang Yiping,
Shen Yan,
Fu Qiuzi
Publication year - 2017
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.12249
Subject(s) - china , economics , chinese economy , financial sector , financial stability , growth model , slow growth , economic policy , economic system , development economics , macroeconomics , business , finance , financial system , political science , law
Abstract In the lead‐up to China's five‐yearly National Party Congress late in 2017, attempts to resolve conflicts between short‐term growth and structural reform have tended to favour immediate growth. The new model of growth requires new economy sectors to grow much more rapidly than traditional (post‐1978) sectors. For a while, this was proceeding well, but in late 2016 and during 2017 there have been signs of priority for growth and therefore traditional sectors over the new economy. Favouring growth over reform introduces risk into longer‐term growth prospects.