China economy not 100% recovered from Covid pandemic: ex-PBOC advisor

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China’s policymakers are “overly aggressive” in containing debt levels, a leading Chinese economist told CNBC, while acknowledging that the economy has not completely recovered from the pandemic.

China, where the coronavirus was first detected, was the only major economy that grew last year. The country reported a 2.3% growth in 2020 from a year ago, driven mostly by exports while recovery in consumption lagged.

“Overall, I would say the economy, the Chinese economy is not 100% back to normalcy. I would say 90% back to normalcy,” Li Daokui, an economics professor at Tsinghua University, told Martin Soong during the virtual CNBC Evolve Global Summit on Wednesday.

Chinese flag waving in front of Shanghai cityscape.

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Li, a former advisor to China’s central bank, said policymakers should allow the economy more time to recover before cracking down on debt. He said consumer spending has not returned to pre-pandemic…

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