Chinese Leaders Call for Balance in Stimulus

Concerned about the excesses of their stimulus package and continued weakness in local and global demand, China's Communist Party is calling for more balanced growth in 2010, reports the Wall Street Journal.


The newspaper says that while the government has reaffirmed its pledge to keep supporting growth through deficit spending and easy bank credit, leaders say the need to support growth must be balanced with concerns about potential inflation and excess capacity, signaling that tougher controls were on the way after 2009's spending and lending spree.


According to the Journal, a shift in emphasis would be difficult for the government to pull off, given the momentum the stimulus plan already has built up. For local governments, "unless they get a political signal from Beijing, they're not going to stop" building new projects,"Victor Shih, a professor of political science at Northwestern University, told the Journal.


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