Hu Jintao on Economic Policy

Hu Jintao’s economic policy during his tenure aimed primarily at stability and addressing acute imbalances generated by the preceding rapid growth, which was amplified by China's 2001 WTO accession. He vigorously addressed soaring regional disparities through initiatives like building rural infrastructure, supporting rural businesses, enacting land reform, improving rural healthcare, and cutting farmers' taxes, which research suggests helped decline regional inequality. He also oversaw modest environmental improvements in major cities, despite the overall pollution challenge remaining significant, as evidenced by pollution data from the mid-2000s.

He steered the economy through the global financial crisis without a recession, partly by coordinating macro economic policies internationally, but his domestic stimulus relied heavily on bank lending to real estate, which a trusted advisor noted later caused productivity growth to slow down. A key feature was managing the currency; he partially floated the yuan in 2005 and allowed a larger revaluation in 2010 to temper trade imbalances. His preference was for a dual-pillar system where State-Owned Enterprises maintained stability and infrastructure while Private-Owned Enterprises drove profits and innovation, contrasting with the increased state control seen later.