China’s massive stimulus is missing a key ingredient: a way to revive the nation’s consumers

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“This economy has many deep, structural, fundamental problems that cannot be turned around just simply by a stimulus package,” Tianlei Huang told Business Insider. “I think it’s probably a bit too early to celebrate.”

The Peterson Institute for International Economics research fellow explained that Tuesday’s stimulus boost will be offset by the country’s major fiscal contraction. The government has simply not spent enough on consumers, even though an economic recovery depends on them.

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