Fan Gang, who sits on the Chinese central bank’s monetary policy advisory committee, believes the Chinese economy has bottomed. While further interest rate cuts might remain an option, Mr. Fan sees ubiquitous signs for an end in China’s economic slow down. In his opinion, strong growth in car sales, rising investments, and slower decline in steel and energy consumption all point towards an economic recovery. Chinese officials remain confident that China will achieve its 8 percent GDP growth target for 2009.
Chinese officials and economist predicted additional Chinese financing to the IMF. They expect an additional $100 billion IMF bonds purchase by China. The additional financing would increase the IMF’s ability to tackle the economic crisis and provide financial support to struggling economies. China also demands a higher representation in the IMF, continuously pointing to the growing importance of developing countries.
China’s State Council decided to raise tax rebates on textile, iron and steel, nonferrous metals, petrochemical, electronic and light industrial exports. The new rates will take effect on April 1 and are meant to support China’s struggling export sector as part of the country’s economic stimulus package.
