market could deter爱上海同城对对碰mine the RMB exchange rate, but if extreme situations arise, the central bank
can exercise some intervention to prevent spillover effects of exchange rate volatilities on neighboring countries.
Yi, the PBOC governor, said the current fiscal policy package is strong enough to counter headwinds, even if
the situation gets a little worse, and “a discussion” could be opened if the scenario turns “tremendously worse”.
Looking forward, the unemployment rate, rather than the GDP growth rate, should receive more atte
ntion. “The Chinese economy is presently doing reasonably well, and I don’t worry too mu
ch about the unemployment problem. So long as people still have jobs, it’s not a concern if growth slows slightly. But this ma
tter deserves to be very closely watched, particularly as now trade tensions escalate rapidly,” Huang said.
If trade tensions start to have “bigger impacts” on the economy, he said
nd force low-end manufacturers to move out more rapidly, it might increase the pres
sure on unemployment. So supporting domestic consumption and encouraging the development of the servi
ces sector, especially labor-intensive services, could help mitigate the pressure, he said.