BLOG: China government focus changes to reigning in credit, controlling debts

Author: ICIS Editorial

2021/04/16

SINGAPORE (ICIS)--Click here to see the latest blog post on Asian Chemical Connections by John Richardson.

China appears to be refocusing on controlling debts as concerns over commodity-price inflation reach senior government levels.

The outlook for China's export growth in 2021 remains extremely uncertain because of the potential cycle out of demand for the goods and services we required at the height of the pandemic into Old World spending.

Equally unclear is the impact of developed-world government spending on local economies and thus China's key export trade.

Will consumers spend more than they save from further government handouts? To what extent will major infrastructure spending in the developed world boost economies?

Scenario planning has, of course, always been an essential tool for estimating petrochemicals demand. Now it is even more important given today's levels of uncertainty.

Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.