China Leadership Monitor

Reading the NPC: Post-Crisis Economic Dilemmas of the Chinese Leadership

Tuesday, May 11, 2010

The National People’s Congress meeting reveals that the Chinese leadership, despite the successes of 2009, feel hemmed in by the economic challenges and dilemmas that face them. Economic policy-makers see themselves as having very little room for maneuver. While monetary policy must reduce excess liquidity in the system, it cannot shift to a sharply contractionary stance. Given the difficulties policy-makers are encountering, they are increasingly stressing administrative measures to achieve their objectives.