Beijing’s Economic Stimulus: What Lies Ahead
Amidst speculations about Beijing’s economic stimulus size, major reshuffling in China’s financial and fiscal system is already underway. The focus remains on curbing risks and ensuring long-term sustainability amidst uncertainties.
Analysts believe that Beijing holds ample resources to tackle economic challenges, more than previously assumed. However, decisions regarding stimulus figures are pending legal procedures ahead of the annual “two sessions” meetings in March. Experts suggest prioritizing strengthening economic activities over disclosing specific figures.
According to Xiang Songzuo, head of the Greater Bay Area Financial Research Institute, the incremental fiscal policy is expected to be substantial. Calls for a stimulus plan worth 10 trillion yuan (US$1.4 trillion) have been advocated by prominent economists, emphasizing the need for significant government intervention.