China has been intensifying its fiscal policy by 2025 as a central part of efforts to boost the economy and face global instability. With a bolder budget, the country set the public deficit goal in 4% of GDP – the highest level in years – totaling 5.66 trillion yuans (about $ 786 billion).
The plan includes the issuance of 1.3 trillion yuans in special long -term treasury titles and 4.4 trillion yuans in local governments. In the first quarter alone, the total emission of central government titles exceeded 3.3 trillion yuans, while local titles exceeded 2.8 trillion – more than 80% above the volume recorded in the same period as 2024.
These features have been directed to stimulate consumption, support sectors under pressure and accelerate investments in infrastructure. National antique vehicle exchange programs for more sustainable models, for example, doubled from financing and have a fund of 300 billion yuans. By the end of April, more than 120 million consumers had benefited, moving more than 720 billion yuans in sales.
In parallel, infrastructure investments have gained a new breath. In the city of Zhanjiang, in Guangdong Province, a large rail project received 1.5 billion yuans in special titles. In total, investments in fixed assets grew 4.2% in the first quarter, and infrastructure rose 5.8%, exceeding the previous year’s rates.
With more flexibility in the application of resources, analysts predict new acceleration in emissions in the second quarter, strengthening the Chinese response to global challenges and expanding space to future economic policies.
Source: https://www.chinahoje.net/china-intensifica-politica-fiscal-para-sustentar-recuperacao-economica/
