Key issues

Policy, economy and finance in China: an indivisible triangle


A difficult year ahead for China: growing risks, but less margin for manoeuvre than in 2015

China is back on the radar of leading analysts and investors after the slowdown in its economy intensified in the second half of 2018. To what extent are the concerns founded and what room do the Chinese authorities have in terms of economic policy to avoid a sharp slowdown? A natural way to put the cooling of the Chinese economy in 2018 into context is to compare it with the period of economic and financial instability it experienced between mid-2015 and early 2016 . 1 As we shall see below,...