China’s Finance Minister Indicates Readiness for Further Economic Stimulus
China’s finance minister indicated the possibility of additional stimulus measures to maintain a 5% growth target amid economic challenges. The government will increase fiscal resources in 2025 while addressing risks from U.S. tariffs and domestic demand issues. Major projects in various sectors are planned to attract private investment.
During a recent media briefing, China’s finance minister highlighted the government’s readiness to implement additional stimulus measures if necessary. This statement came after Premier Li Qiang’s address at the annual parliament meeting, emphasizing that there exists substantial policy flexibility to address both domestic and international challenges faced by the economy.
The government has committed to allocating increased fiscal resources for 2025 compared to the previous year, aiming to maintain a growth rate of approximately 5%. This decision is particularly pertinent as China continues to navigate the complexities of a trade conflict with the United States.
U.S. tariffs imposed by President Donald Trump pose significant risks to China’s industrial sectors, which are simultaneously grappling with weak consumer demand and issues stemming from a heavily indebted property market. These factors collectively heighten vulnerabilities within the Chinese economy.
In light of these challenges, Zheng Shanjie, the state planner, expressed optimism about achieving the annual growth target amidst various uncertainties. To bolster economic performance, China intends to initiate significant projects in crucial sectors such as railways, nuclear energy, and water conservation, with the goal of enticing private investment into these industries.
In summary, China’s finance minister articulated the government’s commitment to utilizing its policy space to stimulate economic growth in the face of external pressures and domestic challenges. With increased fiscal resources planned for 2025 and initiatives aimed at key industries, the government remains determined to achieve its growth targets despite ongoing difficulties.
Original Source: www.voanews.com
Post Comment