News Analysis
China’s economy has been mired in a sort of “silted” deflation: on the one hand, the country’s industrial growth has been stagnant as a result of the G-7-led global “de-risking” strategy against the Chinese Communist Party (CCP); on the other hand, Beijing’s move to increase the money supply has failed to help boost the economy as money is not flowing to people and consumption is still sluggish.
Data from the Bank of China, or China’s central bank, showed that at the end of April, the balance of broad money (M2)—a measure of the amount of money circulation in an economy—was 252.7 trillion yuan ($35.4 trillion), surging 12.4 percent year-on-year, while the proportion of RMB loans was 226.2 trillion yuan ($31.7 trillion), rising 11.8 percent year-on-year; and the stock of social financing amounted to 359.95 trillion yuan (about $50.5 trillion), an increase of 10 percent from the same period of last year….