If any more evidence were needed of a sense of urgency about the revival of China’s economy, it has come from the latest meeting of the Politburo, chaired by President Xi Jinping. The top decision-making gathering waived punishment for bureaucrats and officials who make mistakes in well-intended initiatives to boost the economy through inexperience, inadvertent error or experimentation that does not break the rules.
This policy, known as the “three exempts”, is to discourage them from “lying flat” to avoid taking risks.
This is not the only thing that sets the Politburo meeting apart, there is also the timing. A get-together to discuss economic affairs in September is rare – such meetings are normally held in April, July and October – reflecting recognition of the urgency to revive the economy.
It came only two days after the central bank unveiled a package of economic stimulus measures, to which the markets have reacted positively. The unexpected Politburo meeting is one of the most important for the economy for a number of reasons.
The core of the problem is a lack of confidence, particularly among consumers and the private sector, resulting not only from property-market woes and geopolitical tensions but also because of the perception that Beijing is placing security above the economy.
