{"id":136992,"date":"2012-05-29T04:29:14","date_gmt":"2012-05-29T11:29:14","guid":{"rendered":"http:\/\/chinadigitaltimes.net\/?p=136992"},"modified":"2012-05-29T04:29:14","modified_gmt":"2012-05-29T11:29:14","slug":"xinhua-no-massive-stimulus","status":"publish","type":"post","link":"https:\/\/chinadigitaltimes.net\/2012\/05\/xinhua-no-massive-stimulus\/","title":{"rendered":"Xinhua: No “Massive Stimulus”"},"content":{"rendered":"
State-run Xinhua News Agency announced Tuesday that China will not introduce a large stimulus similar to the one it implemented during the 2008 financial crisis<\/a><\/strong>, tempering expectations following a call last week by Premier Wen Jiabao<\/a> to prioritize economic growth. From Bloomberg:<\/p>\n \u201cThe Chinese government\u2019s intention is very clear: it will not roll out another massive stimulus plan to seek high economic growth,\u201d Xinhua said in the seventh paragraph of a Chinese- language article on economic policy. \u201cThe current efforts for stabilizing growth will not repeat the old way of three years ago.\u201d<\/p>\n Premier Wen Jiabao\u2019s call last week to focus more on boosting economic growth has spurred speculation the nation will step up measures to boost expansion that\u2019s set to slow for a sixth straight quarter. Economists at Credit Suisse Group AG and Standard Chartered Plc said yesterday that stimulus is likely to be smaller than the 4 trillion yuan ($630 billion at today\u2019s exchange rate) package announced in 2008.<\/p>\n Credit Suisse economists said spending on investment will probably range from 1 trillion yuan to 2 trillion yuan. Standard Chartered said China is starting a \u201cmini-me\u201d version of the prior stimulus.<\/p><\/blockquote>\n Smaller stimulus doesn’t mean no stimulus, however, and the government has already made policy announcements this week aimed at promoting growth. The State Council has agreed to revive a “cash for clunkers” program<\/a> that gives consumers financial incentive to trade in their cars, and the Ministry of Finance announced that it will offer subsidies ranging from 100 to 400 yuan<\/a> on energy-efficient televisions and air conditioners sold beginning June 1.<\/p>\n