This is how China is trying to save its economy

China News Stories

Can China save its economy? Can China save its economy?

China has had 35 years of hypergrowth, but now it’s over. It’s going to have to settle for really, really good growth instead.

But that’s still going to be hard now that fewer Chinese are working-age, fewer people are moving to the cities and, most of all, now that China has a debt bubble it’s trying to deflate without bursting its economy as a whole.

That’s left the country’s central bank, the People’s Bank of China (PBOC), in the awkward position of trying to help the parts of the economy that need help without helping the rest too much.

Specifically, the PBOC will let banks loan out more of their money and give them cheap loans in return for local government debt. This sure looks like China is stepping on the monetary gas to try to keep economic growth, which has already slowed to a six-year low

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