A top official with a China-led development bank expressed faith in Beijing’s latest round of economic stimulus while cautioning that results may not be immediate.
“It will take little bit more time but I’m confident that all these measures taken by the Chinese government will be effective,” Jin Liqun, president of the Asian Infrastructure Investment Bank, told an audience of international bankers in Washington on Saturday.
Jin said the latest efforts were different from those taken in the wake of the 2008-2009 financial crisis. “The fiscal policy is initiated to support private businesses, but it’s not ‘flooding’ anymore like it was in 2009,” he said. “It is more focused.”
He said the Chinese Ministry of Finance has been “more proactive” in proving greater fiscal space and issuing special bonds to help local government and enterprises.
“It’s very important to promote an enabling environment for the private sector, for small- and medium-size enterprises — to make life better and easier to do their business and create jobs,” Jin said during a panel discussion organised by The Group of Thirty, a body that gathers current and former policymakers.
AIIB begun operations in 2016 and has grown to 110 approved member countries including China, which controls the lender.
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Jin also expressed concerns over recent moves away from “free” to “negotiated” trade, noting it was particularly a concern with barriers to trade in low-carbon and renewable energy products.
“Just when we need more of these green products to save the planet, their free flow is being restricted,” he said.
