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China needs reforms, not easing, to support growth, says son of former premier Zhu Rongji
- Zhu Yunlai, the former president of China’s first investment bank, says it is ‘impossible’ to rescue any economy by printing money
- Reforms and structured government policy are the key to China’s economic transformation, says the son of former Premier Zhu Rongji
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Frank Tangin Beijing
Excessive monetary easing will not save the global or Chinese economies, the ex-head of the country’s first investment bank and son of its greatest reformers said on Tuesday, and Beijing should instead have the courage to proceed with much needed structural reforms.
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“It’s impossible to lift the economy out of mud by continuously printing money,” Zhu Yunlai, the former CEO of China International Capital Corporation (CICC), the country’s leading investment bank, told an annual conference organised by financial magazine Caijing.
The remarks from Zhu, the son of former premier Zhu Rongji, referred mainly to the decision by some developed nations to restart quantitative easing in the face of a potential global recession, but could also serve as a reply to mounting calls for China to increase stimulus measures to arrest slowing growth.
[Monetary printing] seems to save the economy in the short term, but in the long run, it, like poison, will worsen the efficiency of the whole economy … We must stop it if it proves not to be good
“[Monetary printing] seems to save the economy in the short term, but in the long run, it, like poison, will worsen the efficiency of the whole economy … We must stop it if it proves not to be good.”
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