China widens fiscal window to step up spending, counteract US tariffs
China has set a record high deficit ratio of 4% for this year to increase government spending and counter the impact of US tariffs. This move, revealed alongside other key economic benchmarks during the National People's Congress, signifies a shift towards a more proactive fiscal policy aimed at achieving economic growth targets.
The increased deficit ceiling, representing an additional 1.6 trillion yuan (US$219.9 billion), is seen as a response to the escalating trade war with the US, particularly the recent doubling of tariffs on Chinese imports. Analysts believe this fiscal stimulus will help China maintain its GDP growth target of "around 5%" in 2025, offsetting the negative effects of the tariffs and supporting domestic demand.
via SCMP Full Text Feed
China has set a record high deficit ratio of 4% for this year to increase government spending and counter the impact of US tariffs. This move, revealed alongside other key economic benchmarks during the National People's Congress, signifies a shift towards a more proactive fiscal policy aimed at achieving economic growth targets.
The increased deficit ceiling, representing an additional 1.6 trillion yuan (US$219.9 billion), is seen as a response to the escalating trade war with the US, particularly the recent doubling of tariffs on Chinese imports. Analysts believe this fiscal stimulus will help China maintain its GDP growth target of "around 5%" in 2025, offsetting the negative effects of the tariffs and supporting domestic demand.
via SCMP Full Text Feed
