Stable Chinese growth requires open markets

Bold reforms, not the usual stimulus steps, are key to harnessing the power of SMEs

20190124 Editorial China Car

Slowing car sales are just one of many emerging signs that China’s economy is faltering. © Reuters

The economic warning signs are flashing brighter for the Chinese economy. The country's push to achieve stable growth is being hampered by a combination of excess debt held by regional governments and companies, and the struggle with the U.S. for economic, trade and technological dominance.

To put the economy on a favorable trajectory, Chinese policymakers need to quickly introduce bold measures to open the country's markets and help small and midsize companies thrive.

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