Summary
China plans to raise its budget deficit to 4% of GDP in 2025, the highest in history, to support economic growth.
The increased deficit is part of a broader fiscal strategy to counteract potential U.S. tariffs and stimulate domestic demand.
Additional measures include issuing special bonds and adjusting the yuan’s value to support exports and stabilize the economy.
China has announced plans to increase its budget deficit to 4% of GDP for 2025, marking the highest deficit in the country’s history. This significant shift in fiscal policy is aimed at stimulating the Chinese economy, counteracting the potential impact of U.S. tariffs, and addressing various economic challenges. The decision reflects the country’s determination to maintain economic growth despite the evolving global landscape.