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China seeks spending fix as economy wobbles

Published on Jun 15, 2014 12:03 PM
Customers shop at a supermarket in Beijing, on April 16, 2014. -- PHOTO: REUTERS

SHANGHAI (AFP) - China is unlikely to resort to the kind of spending splurge that saw it through the 2008 financial crisis to deal with its slowing economy, analysts say, but recent moves to ramp up state support suggest it cannot wean itself completely off the stimulus drug.

Policymakers are seeking more tools to keep growth from dipping below the key 7.5 per cent level, worried job losses could spark social unrest.

The central bank announced Monday it will slash the amount of funds some lenders, including rural banks, must hold in reserve to pump more money into the economy - the second such move in two months.

Chinese Premier Li Keqiang on Wednesday gave details on plans announced in March to transform China's longest river, the Yangtze, into an "economic belt" by building transport infrastructure to link the country's west and east.

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