The foundation of China’s economic recovery is not solid enough, a senior Communist Party official said on Saturday, warning of possible spillover effects from global economic problems.
Some countries have to play a balancing act as they try to stabilize their economies, prices and financial markets, said Han Wenxiu, deputy head of the party’s office for financial and economic affairs, adding that the global economy was at risk of stagflation.
Such risks come as many developed countries aggressively tighten their monetary policy causing problems for banks as well as bringing foreign debt woes and financial market turmoil, he said at a government-organized China Development Forum, without naming any specific countries.
Source : Chinese economic recovery foundation not strong enough, warns party official