China's Economic Stimulus: A 12 Trillion Yuan Strategy for Recovery

Monday, 21 October 2024, 12:30

China's economy faces significant challenges, requiring a stimulus package of 12 trillion yuan to boost growth. Zhang Bin emphasizes the urgency for immediate measures to prevent insufficient demand from exacerbating economic decline.
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China's Economic Stimulus: A 12 Trillion Yuan Strategy for Recovery

China's Economic Crisis

China's economy is grappling with a downturn, prompting calls for substantial economic stimulus. Experts believe China's economic recovery hinges on new strategies to combat insufficient demand. Zhang Bin, deputy director at the Chinese Academy of Social Sciences, suggests that new government debts could exceed 12 trillion yuan (US$1.67 trillion) in 2025, including treasury bonds and local special-purpose bonds.

Stimulus Measures and President Xi Jinping's Involvement

In recent discussions, President Xi Jinping's administration emphasizes the need for aggressive stimulus measures to uphold the economic growth target of around 5 percent. Zhang highlighted that increasing government spending is essential to drive demand. The government's current policies are focused on high-profile projects and addressing local government debt relief.

The Importance of Timely Action

Zhang noted that the speed of implementing these policies is crucial. Delays could worsen the economic situation: “It is a race between policy and time.” Effective measures are needed to avert a downward spiral fueled by inadequate income and spending.

  • Proposed debts exceeding 12 trillion yuan
  • Focus on infrastructure improvement
  • Emphasis on immediate action to stimulate demand

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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