On July 12, the Frankfurt School of Finance and Management, a longstanding partner of ZIBS, and Table.Media, the largest independent start-up for quality journalism in Germany, co-hosted an online webinar focusing on China's post-COVID fiscal policy. As part of the event, Prof. BEN Shenglin, Dean of ZIBS, was invited to share his insights on the topic "Will China's Fiscal Policy Manage the Comeback of its Economy? ".
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In the presentation, BEN Shenglin mentioned the "three carriages" of Chinese economy, namely consumption, investment, and export. Also, he analyzed the data of the major economies and concluded that compared to other major economies, China has greater fiscal prudence, namely greater flexibility in fiscal stimulus, as evidenced by indicators such as the fiscal deficit ratio and the national balance sheet. Therefore, Chinese government has been refraining from using a traditional sort of stimulus package, as China is now at the stage of transformation to a high-quality, high-value chain of industries.
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BEN Shenglin further pointed out the challenges and opportunities that the Chinese economy faces. These headwinds include global supply chain challenges, confidence deficit among entrepreneurs and consumer demand, the impact of an aging population on the banking system, and structural shortages. At the same time, he emphasized that despite facing multiple challenges, there are also opportunities within these challenges. China will exercise greater caution regarding what will be good for the sustainability of economic growth.
The seminar attracted nearly 300 online registrants. The guest speakers included Dr. Helen Liang, Managing Director of Hauck Aufhäuser Lampe Privatbank AG, and Prof. Dr. Horst Löchel, Co-Chairman Sino-German Center (SGC), Frankfurt School of Finance & Management. They each delivered speeches on the related topic.
