In a bold move to energize its economy, the Chinese mainland increased fiscal spending during the first half of 2025. As announced by the Ministry of Finance, proactive measures include an impressive 2.6 trillion yuan in new local government bonds to fund major infrastructure projects and regional development initiatives. 🚀
At the same time, special sovereign bonds totaling 500 billion yuan were issued to recapitalize four key state-owned commercial banks, further strengthening the financial sector’s capacity to support economic activity.
Social welfare enhancements also took center stage. Basic pension payments were raised, subsidies for public health and medical insurance were increased, and funding for education access and student aid programs was expanded. New family support measures, including childcare subsidies and pilot programs for free preschool education, are set to boost living standards across communities.
To spark domestic consumption—a critical engine for growth—the Chinese mainland pre-allocated 162 billion yuan in special bond funds for household appliance trade-in programs, effectively reducing costs for consumers. Fiscal transfers to local governments grew by 7.5% year on year, reaching 2.73 trillion yuan, which in turn helped restructure implicit debt and ease financial burdens at the grassroots level.
These coordinated fiscal policies highlight a dynamic approach to economic stability, blending immediate relief with long-term development. This decisive boost promises exciting opportunities for young entrepreneurs, students, and professionals across Asia.
Reference(s):
China ramps up fiscal spending to boost growth and support livelihoods
cgtn.com
