Know The Difference Minute

China’s politburo, the central committee of the Chinese Communist Party, said the government will step up policy support for the economy. 

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Turning the ship around?
Welcome to the Know the Difference Minute for Tuesday, July 25th.
China had an extended lockdown from COVID. It only started lifting restrictions back in October 2022. The reopening was less than stellar. High hopes hit the rocks of reality and China’s markets have been struggling.
China’s politburo, which is the central committee of the Chinese Communist Party, said the government will step up policy support for the economy. Markets popped higher. Can they really turn that gigantic ship around?
It may be tough. They’re trying to be a measured and targeted, branding this as a comprehensive counter-cyclical move. The one good thing about communism is that they can move quickly if they want. Or, rather, they can force others to move quickly when the politburo says so.
It's still going to be choppy waters because socialism, a shrinking population, and strained relations with the West aren’t very conducive to growth.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.