China's central bank cut the reserve requirement ratio (RRR) for the yuan deposits held by banks by 50 basis points on Wednesday. It also raised the foreign exchange reserve requirement ratio to 9% from 7% at the same time, aiming to hedge against slowing economic growth and slow the yuan’s recent rapid appreciation. Unlike Western countries, where policymakers have unleashed massive stimulus policies to boost the economy, which in turn had led to a surge in inflation, China has preferred to adopt a prudent policy stance. In this episode of BizBeat, CGTN's Guan Xin explains China’s new economic policies.