No further government stimulus measures likely: report

Source:Global Times Published: 2013-5-26 23:38:01

Senior officials and experts believe it is unlikely the central government will launch a new round of economic stimulus plans despite a slowdown in the country's economy, the Economic Observer reported Saturday.

"Enterprises need to close down backward production and upgrade their industrial structure, and should not expect further economic stimulus measures by the government," an official from the National Development and Reform Commission, who wished to remain anonymous, told the Beijing-based newspaper.

Another official from the Ministry of Industry and Information Technology was quoted by the newspaper as saying that the Chinese government did not need to begin new stimulus measures at present.

"The stimulus measures will be taken only if the growth of the real economy is slower than (the government's) expectations," the source said, adding that the measures could have side effects, such as disturbing the market order.

Some Chinese industrial associations have also said they don't expect further stimulus policies, even though some sectors have encountered serious challenges.

"The current challenges we have are issues of the market itself, which should be resolved by the market, rather than by the central government launching new stimulus plans," said Gao Yong, deputy director of the China National Textile and Apparel Council.

The China Iron and Steel Association said it hopes the government will release related policies to help eliminate excess capacity in the steel sector.

"Stimulus measures like large-scale investments are not sustainable policies for China's economy," said Li Xuesong, deputy director of the Institute of Quantitative & Technical Economics at the Chinese Academy of Social Sciences.

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