China plans new economic measures as trade tensions rise with U.S

dw.com

China's leadership plans to implement more proactive economic measures in 2025, following over $2 trillion in stimulus announced this year. Despite these efforts, the economy is struggling to meet growth targets, with a 4.8% increase in the first three quarters of 2024. Recent measures include injecting liquidity into banks and supporting local governments facing debt crises. However, analysts argue these actions mainly restructure existing debts rather than stimulate new growth, with concerns about local government debt levels remaining high. As trade tensions with the U.S. escalate, especially with potential new tariffs from Donald Trump, experts suggest that China's stimulus may need to be significantly larger to effectively boost domestic demand and address structural economic issues.


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