Chinese central bank adviser calls for money to be given to citizens to support consumption growth and boost the economy

The Chinese authorities should shift their stance from prioritising investment over consumption, quicken fiscal spending, and “give cash handouts to the people”, said Huang Yiping, a prominent economist and member of the People’s Bank of China’s monetary policy committee, according to a recently published article. NTU economist Prof Tan Kong Yam said the Chinese government has not taken steps to give cash handouts partly due to concerns of inflation and the impact on the middle- and low-income groups. He noted that China has been hoping to drive industrial development and thus increase economic growth and employment opportunities to restore consumer confidence, but this will be a slower process than giving cash handouts.

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