China’s Finance Minister Commits to Proactive Fiscal Policy for 2025
China’s Finance Minister Lan Fo’an announced a more proactive fiscal policy for 2025 to tackle economic challenges and boost consumption. Key initiatives include issuing 1.3 trillion yuan in treasury bonds and increasing funding for consumer programs to enhance domestic demand and investment efficiency. Lan emphasized maintaining a favorable business environment and accelerating technological development.
At the China Development Forum 2025, Finance Minister Lan Fo’an announced that China will implement a more proactive fiscal policy this year to reinforce its economic strength. He emphasized the country’s enhanced economic and fiscal capacities, along with its extensive experience in macroeconomic management and fiscal governance, as critical factors in addressing current economic challenges, as reported by News.Az quoting Xinhua.
Lan expressed confidence in China’s economic development, attributing it to the country’s solid fundamentals, numerous advantages, strong resilience, and significant growth potential. He underscored the importance of awareness regarding potential risks and the foresight necessary to mitigate them, indicating that China possesses sufficient fiscal flexibility to tackle possible economic shocks and challenges.
The primary objective of this fiscal policy will be to boost consumption significantly and improve investment efficiency to expand domestic demand. “China has the world’s most promising super-sized market, with immense potential for consumption growth,” stated Lan, highlighting that the government is implementing measures to stimulate consumption from both supply and demand perspectives.
In pursuit of these goals, China plans to issue 1.3 trillion yuan (approximately $181 billion) in ultra-long special treasury bonds in 2025, an increase of 300 billion yuan from the previous year. Additionally, funding for the national consumer goods trade-in program will double, rising from 150 billion yuan to 300 billion yuan in 2025.
Lan announced that significant fiscal funds have been allocated this year, with various funding channels coordinated to support effective investment in targeted areas. He also emphasized the acceleration of new quality productive forces as an essential priority, with increased government support for education, science, technology, and talent development.
Addressing global business leaders, Lan stated that China’s fiscal policy would facilitate high-standard opening up, ensuring equal treatment for all business entities and continuously enhancing the business environment. The two-day China Development Forum 2025 is themed “Unleashing Development Momentum for Stable Growth of Global Economy.”
In summary, China’s Finance Minister Lan Fo’an has outlined a commitment to a proactive fiscal policy aimed at enhancing economic stability and growth. Key initiatives include boosting consumption, increasing treasury bond issuance, and supporting effective investment and innovation. The Chinese government remains focused on creating a favorable business environment and preparing for potential economic challenges, reinforcing confidence in its economic trajectory.
Original Source: news.az
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