China Focus: policy support and fiscal stimulus against the Covid-19 economic slump

China was the first Country to be hit by the Covid-19 in the earliest part of 2020. From the early stages, the Chinese Government has taken impressive measures to the epidemic under control shutting down businesses, implementing strict quarantine measures for international travelers and, eventually, shutting down the border to all foreigners.

In one area though, China seems to have been extremely prudent compared to the reaction in other parts of the World: the set of measures and economic stimulus put into place by the People’s Central Bank.

Many argue the Chinese will be easing in the second half of the year, when the effect of Europe’s and American’s shutdown will start to affect the country’s performance, and possibly saving more ammunitions to sustain the economy in case of a deterioration of trade and FDIs generated  by a Covid-19 new cold war. Others believe China has simply learned the lessons from the SARS and Financial Crisis and it is testing a more cautious approach to avoid overshooting.  These issues, with many others,  will  be at the center of the discussion of the upcoming National People’s Congress that will gather more than seven thousand delegates to Beijing from all parts of China and abroad.

Given that the state of health of China’s economy – one of the few that this year will show a positive sign – has such strong impact on businesses worldwide, including that of Italian enterprises, we asked Prof. Ma Jun will help us navigate through the complexity of China’s macroeconomic policies and help the entrepreneurs and top managers of the Ambrosetti Club take timely decisions about their companies’ China strategy.