China's budget deficit for the first half of the year has hit a record high, reflecting the government's intensified efforts to boost domestic demand as tariffs take a toll on exports to the US.
According to Bloomberg, calculations based on the latest data disclosed at a press conference by China's Ministry of Finance on Friday (July 25) show that from January to June, China's broad fiscal deficit reached 5.25 trillion yuan (30,924 billion ringgit), a 45% increase compared to the same period last year.
Faced with a sluggish real estate market and mounting deflationary pressures, the Chinese government has brought forward fiscal stimulus measures to spur infrastructure investment and household consumption, thereby supporting economic growth.
Despite a recent US-China trade truce, China's exports to the US have still slumped, since US tariffs on Chinese goods remain about 30 percentage points higher than last year.
China's top leadership will convene a meeting at the end of this month to discuss economic policy for the remainder of the year. At the same time, China and the US are preparing for a new round of trade talks next week, the outcome of which will be a key factor in determining whether further stimulus measures are needed.
According to Bloomberg, calculations based on the latest data disclosed at a press conference by China's Ministry of Finance on Friday (July 25) show that from January to June, China's broad fiscal deficit reached 5.25 trillion yuan (30,924 billion ringgit), a 45% increase compared to the same period last year.
Faced with a sluggish real estate market and mounting deflationary pressures, the Chinese government has brought forward fiscal stimulus measures to spur infrastructure investment and household consumption, thereby supporting economic growth.
Despite a recent US-China trade truce, China's exports to the US have still slumped, since US tariffs on Chinese goods remain about 30 percentage points higher than last year.
China's top leadership will convene a meeting at the end of this month to discuss economic policy for the remainder of the year. At the same time, China and the US are preparing for a new round of trade talks next week, the outcome of which will be a key factor in determining whether further stimulus measures are needed.