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China’s Rate Cuts: A Short-Term Fix Ignores Deep Structural Issues

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China’s Rate Cuts: A Short-Term Fix Ignores Deep Structural Issues
The headquarter of the People's Bank of China, the central bank in Beijing on Dec. 13, 2021. Andrea Verdelli/Bloomberg via Getty Images
Antonio Graceffo
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Commentary

In a sudden and possibly desperate attempt to revive a faltering economy, the People’s Bank of China (PBOC) has slashed interest rates. This move may only provide temporary relief while potentially worsening long-term issues.

Antonio Graceffo
Antonio Graceffo
Author
Antonio Graceffo, Ph.D., is a China economy analyst who has spent more than 20 years in Asia. Graceffo is a graduate of the Shanghai University of Sport, holds an MBA from Shanghai Jiaotong University, and studied national security at American Military University.