A view of Qingdao Port in Shandong Province, where Chinese goods for export are loaded./ Source from search engine Baidu.

1

By Hong Soon-do, Beijing correspondent, AsiaToday - Despite social, political, and economic woes, China is striving to revive the economy. It is unleashing a barrage of support measures almost every day in order to turn things around. It's clear that China is desperately trying hard to boost economy.

Considering Xinhua and other state-run media outlets' August 26 reports, the Chinese authorities have no choice but to implement measures. Ahead of its massive military parade on September 3, there were so many accidents. First, there was the devastating chemical explosions that swept the Binhai New Area f the port of Tianjin on Aug. 13. The authorities are concerned that the growing public discontent towards the government would exercise a bad influence on the overall economy. They have no choice but to revive China's shaky economy.

Another reason for the Chinese government's desperate move is China's bad economic situation. It's so simple if you take a look at the market situation. After suffering from heavy fall on Aug. 24 and 25, the benchmark Shanghai Composite index fell below the psychologically significant 3,000-point level. critical 3,000 points. It is likely that the index will stay around the 3,000-point level for a considerable period of time. Moreover, China's exports or domestic demand are not showing any signs of improvement. The Chinese authorities are taking huge actions to save its stock market. China's central bank, the People's Bank of China (PBOC), announced cutting the reserve requirement ratio (RRR) and lowering key interest rates on Tuesday, which can be seen as one of the huge actions taken by the government. 

China's efforts to revive the economy won't stop at this level. There could be more yuan depreciation as Wang Song Qi, deputy director of Finance Research Center at the Chinese Academy of Social Sciences, said, "We could say that exports are still working as locomotive of economic growth. If these exports are to revive, the present value of the yuan should be seen high." In addition, China may strengthen regulation to measure shadow banking. China's such move could accelerate when its Sept. 3 military parade ends. Perhaps, it's correct to say that China's move to revive the economy has just begun.