The trip also raises the possibility of tighter US sanctions against China, which will reinforce Beijing’s view that the US is saying one thing and doing another.
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More support for the housing market is in the cards, but the best outcome is stability instead of a big boom.
A drought this summer could mean another power crisis in Sichuan, and existing measures do not seem to go far enough to combat this risk.
Official engagement between the US and China has resumed, suggesting a thawing of bilateral relations in the near term.
Supportive policies are back amid Beijing’s concerns about growth; past experiences suggest they could help put NEV sales over 9mn this year.
Chinese assets have all returned to their levels at the beginning of 2023 and the market is eager for more policy supports by Beijing.
China’s growth momentum slowed in April, with the housing market being the biggest drag through souring sales and construction.
Private firms continued deleveraging and increased investment in only a few sectors; private investment may take longer to recover broadly.
China’s rapid recovery from the Covid pandemic in Q1 has outpaced market expectations and is on track to continue doing so.
Beijing is building an alternative residency permit system that will provide social services and make hukou less important in many cities.