Bai Chong-En: Enhanced fiscal-monetary coordination to facilitate reform

In an exclusive interview with China Daily, Bai Chong-En, a member of the 14th CPPCC National Committee and dean of the School of Economics and Management at Tsinghua University, said that China's economy is facing an imbalance marked by relatively strong supply and subdued demand.

He said fiscal resources should be deployed during the transition period to support reform efforts before they are fully implemented. "Investing in reform", he added, would help unlock the potential of household consumption, particularly in services.

Bai noted that a period of relatively weak prices provides a window of opportunity to push forward reforms, as more proactive monetary policies can be adopted without triggering excessive inflation. He emphasized that the government must play a central role in the process, with close coordination between fiscal and monetary policies.