China Will Face Long-Term Demand Constraints-Herald

Weakening demand, especially from consumers, will become a long-term restriction on the Chinese economy, as China enters the era of negative population growth and an ageing society, the 21st Century Business Herald reported citing Cai Fang, member of the People’s Bank of China’s Monetary Policy Committee. China’s population may peak this year or next year and India’s population will exceed China’s to make a very significant gap, Cai predicted. Fiscal policy will play a more important role than monetary policy in addressing demand constraints, with fiscal spending tilting more to safeguard people's livelihood and social welfare, Cai was cited as saying.