China economy's divergence between decision and implementation

By Susanne Yarow

Central Political Bureau Economic meeting in April. 2019 indicated that domestic economy is facing downward pressure, which is mainly caused by cyclical, structural and systimic factors. Actually Central Political Bureau has clearly realized that China economy is facing significant headwinds and downward pressures, on top of that is insufficient demand, and the major contradiction of society is uneven development.

From the standpoint of the implementation of policy, the government is more inclined to solve the problem from supplyside rather than demandside. Aggressive supplyside reform in order to respond to the economic downward pressure since 2012 is the reflection of the ploicy.

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