Yetsenga said a key driver of the recovery around the world, and the pace at which this would occur, would be production.
“Of course, everybody is trying to bring production back online but demand is still quite weak,” he said. “So this gap in China is actually being replicated elsewhere. I think it is one of the factors that will slow the recovery out of this crisis.”
Yeung said China is aware of the production issue and more focussed on the longer term.
“Policymakers already know they cannot count on exports,” he said. “They know the biggest growth driver should be coming from [inside China]. This is what the government will count on - more emerging-industry domestic activities will drive the economy.”
Yeung said a key element of China’s economic policy is aimed at improving wellbeing.
“Over the next, not only five years, 10 years, and even 20 years down the road, the emphasis is on quality and efficiency,” he said.
In a wide-ranging discussion, the two experts also spoke about China’s economic targets, plans for the Renminbi and the National People’s Congress. Listen to a podcast above to find out more.
Shane White is Institutional Content Manager at ANZ
This article was originally published on ANZ’s Institutional website