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.