Explaining the stimulus package – Shaun Rein

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A fast-acting government has organized a soft landing of its economy, says Shaun Rein of the research firm CMR in Shanghai in an overview of the country’s stimulus package for Seeking Alpha. Consumer confidence remain strong and did not need much attention, he says, but a combination of other measures has certainly helped to mitigate the effects.

We need to give credit to the Chinese government — they have moved incredibly fast to implement policies to ensure a soft landing in China. Even adding the number of graduate student positions in universities has helped keep too many of China’s 6 million university graduates from entering a terrible job market. According to our research, 80% of Chinese have expressed confidence that the Government will implement the right policies to right the Chinese economy.

But there is more to be done, Rein says too:

What the Chinese government needs to do more of is make it easier for small, 3-15 person shops to get loans and start companies. 60% of job creation in the US in the last few decades has been in companies with fewer than 50 employees. It is still way too bureaucratic for small business owners. I am also worried about over investment in certain sectors — it is filling up those huge real estate developments in the middle of nowhere with small businesses that will be key for making sure we don’t have worthless infrastructure projects.

More at Seeking Alpha. Commercial Shaun Rein is also a speaker at the China Speakers Bureau . When you need him to share his insights, do get in touch.