China’s Economy Remains a Bad Bet

After having caused most of China’s present economic problems, Beijing’s recent efforts to renew the economy’s momentum, including recent interest rate cuts, are too little, too late

A migrant worker crosses a road after arriving on a long-distance bus in Beijing on March 10, 2021. Greg Baker/AFP via Getty Images

Commentary

For the second time in only two months, the People’s Bank of China (PBOC) has cut interest rates. Clearly, the authorities in Beijing are eager for China to regain its economic momentum, but this gesture on interest rates is little more than just a gesture.