Recently, Beijing has introduced new policies to address a decline in property sales. These measures include the government purchasing unsold homes with loans from the central bank. This is a significant departure from previous efforts that aimed to boost industrial production as the primary means of economic recovery. High-ranking officials have been stressing the importance of domestic demand, which has been welcomed by many.
However, some investors are skeptical of President Xi Jinping’s apparent shift in views on real estate and consumption. His past stance that “housing is to be lived in, not speculated on” led to crackdowns on speculation. It is difficult for some people who grew up during a time when industrial production was prioritized over people’s livelihoods to imagine that Xi’s beliefs can truly evolve. Can someone genuinely change their worldview established during their formative years?
Despite these doubts, it appears that China may be adapting its economic strategies. By focusing on stimulating domestic demand and addressing a property downturn, the Chinese government may be acknowledging new economic realities. However, there are still many uncertainties about whether deeply held beliefs can truly change, especially for those influenced by their upbringing in a different economic era.
In conclusion, China’s recent policy initiatives suggest a shift in economic priorities towards stimulating domestic demand and addressing a property downturn. While there are concerns about whether deeply ingrained beliefs can change, it appears that Beijing is adapting to new economic realities.
