Chinese leaders are buying time to fix the economy. Earlier this week, the Politburo issued its midyear guidance on Chinese economic policy. Since then, the central bank and the all-important Financial Stability and Development Commission have given the plan a bit more detail. The upshot: The sweeping reform drive should continue, but modest stimulus and other measures will be taken to ease the pain inflicted by reforms and trade wars. China is fighting a two-front war – against U.S. trade policy and against its own internal economic dysfunction – and it doesn’t want to halt reform unless it absolutely must, lest it lose on the latter front. But the U.S. tariffs are making it hard to win the former front. With no clear counterattack, this week’s policy guidance can best be described as treading water – at least until Beijing can understand how far the U.S. will push the issue and devise a more decisive plan to either find a way out of the trade war or see the fight through t
Daily Memo: Bought Time in China, Lost Leverage in the US, Hard Times in Iran
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