China should pursue structural reforms to revive economy, says its central bank advisor Liu Shijin

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Reuters quoted PBOC adviser Liu Shijin, saying the Asian country has limited room for further monetary policy easing. Shijin, a member of the People's Bank of China's (PBOC) monetary policy committee, opined that Beijing's room for monetary policy easing was limited by widening interest rate differentials with the US.

Speaking at the annual Bund Summit conference, Shijin said that Chinese governments at various levels are under stress fiscally. "If China continues to focus on macro policies in its efforts to stabilize growth, there would be more and more side effects," Reuters quoted Shijin, vice president of the Development Research Center of the State Council, as saying.

Exciting news! Mint is now on WhatsApp Channels :rocket: Subscribe today by clicking the link and stay updated with the latest financial insights! Click here "More importantly, we will again miss the opportunity for structural reforms," he said. Amid weak consumption, falling exports, and a deepening property debt crisis, China's post-COVID recovery has lost momentum, while the economy is struggling despite a slew of monetary and fiscal measures to boost confidence.

ALSO READ: ‘Empty houses everywhere': Former Chinese official's rare public critique on China's economy On 24 September, Shijin proposed a new round of structural reforms which may aid the economy immediately, while also injecting long-term growth momentum. The new round of structural reforms includes demand-side reforms with a focus on giving migrant workers access to public services enjoyed by city dwellers, as well as supply-side reforms that involve igniting entrepreneurship in emerging industries.