What is China's economic stimulus policy

Very simple, the troika that drives the economy. Investment, consumption and export.

As far as exports are concerned, the current external economy is not good, the US economy is in recession, the EU debt crisis, the consumption capacity of Europe and the United States is declining, the export volume is declining, and the ability to stimulate the economy is declining year by year.

Consumption, the basis of consumption is the increase of residents' income, the improvement of pension funds and unemployment insurance, etc. Consumption can be said to be the best way to stimulate a country's economy, and it is also the biggest factor to stimulate the European and American economies. Since the Zhu era, we have also continuously improved the pension and social security measures and raised the wages of employees. On the one hand, it is to stabilize the society, on the other hand, it is to expand the promotion of consumption to the economy.

At present, investment is the most direct and effective way to stimulate the economy in China. After 2008, the investment of 4 trillion yuan enabled China to quickly get out of the adverse effects of the subprime mortgage crisis. However, the biggest fatal point of government-led investment is that it is easy to trigger inflation and the process of de-capacity. It has a quick effect on the short-term economy, but it has many unfavorable factors in the long term. But this is the government's favorite economic stimulus package at present.