Beijing is urging local governments to purchase unsold homes using low-interest loans provided by the central bank in an effort to combat a significant property market downturn. This shift in economic priorities marks a departure from the traditional focus on industrial production as the primary method of stimulating economic growth. Top officials are now emphasizing the importance of boosting domestic demand, indicating a possible change in mindset regarding real estate and consumption.
Despite President Xi Jinping’s previous strict enforcement of anti-speculation measures, including the infamous slogan “housing is to be lived in, not speculated on,” doubts linger among investors regarding his true stance on these matters. Xi’s upbringing during a time when industrial production was paramount in China’s development, leading to neglect of people’s well-being, raises questions about the ability to shift deeply ingrained beliefs.
As China continues to navigate economic challenges, it remains uncertain whether this policy shift will be effective. The question remains: can a person truly alter their long-held worldviews shaped during their formative years? Xi’s potential pivot towards supporting domestic consumption over industrial production suggests a willingness to adapt to changing economic circumstances. Only time will tell whether these policy shifts will prove successful in stabilizing China’s economy.
