Recent reports in the international press point to the Chinese economy being in “bad shape”, with many wondering what happened to the “Chinese miracle”. However, this is a myopic view of the West, especially regarding the Chinese government's recent measures, which were adopted to reinforce China's activity in the short term, in a way that benefits - and not sacrifices - long-term growth. .
Given this, the question that remains is: how is the Chinese government facing these challenges? To answer this question, the first thing is to say what Chinese leaders are not doing.
China is not promoting a massive injection of resources into the financial system, in order to generally stimulate the real economy, as it did in the 2008 crisis. Chinese leaders know that the short-term benefits of such a measure do not outweigh the cost nor the increase in debt in the long term, as well as the drop in productivity.
So for China, no massive stimulus is a good sign. Therefore, Chinese President Xi Jinping emphasizes the importance of high-quality development, which cannot be achieved with quick money.
