China: Economic Stimulus Plan

The slowdown of the Chinese economy is under the magnifying glass of analysts and politicians from all over the world. Today, the Politburo of the Central Committee of the Communist Party of China met in the presence of President Xi Jinping to review the state of the economy and take measures that could restart it in the second half of 2023.

The same governing body of the Dragon stated that “the Chinese economy is facing new difficulties and new challenges.” Xinhua agency explains that for Politburo, the reasons for these critical issues are “insufficient domestic demand, difficulties in the operation of certain companies, hidden risks and dangers in key areas, and a gloomy and complicated external situation.”

The recipe for escaping this situation lies in an active fiscal policy combined with reasonable monetary policy. Thus, support will be provided for scientific and technological innovation and the development of micro-, small and medium-sized enterprises.

According to Xinhua reports, Xi Jinping then explained that “China will work on achieving its annual development goals.”

The goals and incentives announced at the meeting include expanding domestic demand through stimulating consumption, particularly for cars, electronics, and household goods. Tourism is also one of the sectors that will be promoted. After that, the real estate policy will be “optimized” in order to get out of the recession in the sector that affects the Dragon economy so much.