China is taking measures to ensure that economists become more optimistic in their analyses of the country’s economy as regulators and media censors as well as government officials issue warnings to them.
According to The Wall Street Journal, China's securities regulators, media censors and state officials have verbally reprimanded economists, analysts and financial journalists for having pessimistic views on the country's economy.
Apparently, the Chinese government wants to foster a "zhengnengliang," or the so-called "positive energy" environment amid the country's lingering economic crisis.
Censorship on Economists
According to the WSJ report, China has previously focused on political dissidents, leaving economic and financial reports relatively uncensored thanks to the government's initial belief that "freer flow of information serves economic vitality."
But since the country felt the effects of slowdown in growth over the past year, the Chinese government is now being more careful in what economists have to say on the matter so as to avoid driving current and potential investors out of the country.
One of the financial experts sampled with China's change of heart is Guotai Junan Securities Co. chief economist Lin Caiyi, who was known to be very vocal on the country's escalating problem of corporate debt, glut housing, and the decline in currency.
According to WSJ, the warning she received on avoiding "overly bearish" comments about the Chinese economy was already her second, leaving others like her afraid to issue more critical reports.
Aside from that, China's financial regulators also told reporters who usually cover the country's economic growth to focus more on official statements from the country's stock market regulator, the China Securities Regulatory Commission.
China had already made similar actions in the past including banning the terms "equity disaster" and "rescue market" from being used in reports, Zero Hedge recalled.
Media Licenses in Exchange for Board Seats
Meanwhile, a Bloomberg report on Tuesday revealed that China is planning to offer news websites a deal wherein the state provides them with license to report news in exchange for board seats and at least 1 percent of the company's stakes.
According to the sources who refused to be identified, the proposal would allow the government to monitor information distributed by the content providers and block whatever information they deem detrimental to the nation.
They clarified, however, that the official who would represent the government would not be allowed to receive dividend returns or any other incentives and would not interfere in any business-related decisions of the company.