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China Vice Finance Minister says fiscal spending, policy will help expand domestic demand

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China Vice Finance Minister

  • 2023 tax and fee
    cuts, rebates totalled 2.2 trillion yuan
  • Expects fiscal
    revenue to continue to recover in 2024
  • Will maintain
    certain intensity in fiscal spending in 2024
  • Fiscal policy will
    help expand domestic demand
  • Will appropriately
    increase investment under central government budget

This is hardly flood-like stimulus, but China has been saying that won’t be coming. China’s piecemeal efforts have not adequately addressed a moribund, deflationary economy. Still, these efforts are better than nothing.

In other news from China, this is from a Bloomberg report (gated), in brief:

  • President Xi Jinping skipped setting the date for an already delayed meeting to map out China’s longer-term economic plans, a move likely to disappoint already gloomy investors.
  • The Communist Party’s 24-member Politburo pledged to tighten political control and discipline at its monthly gathering on Wednesday, according to the official Xinhua News Agency.
  • The readout from the conclave didn’t mention the third plenum, which normally focuses on economic issues. Not setting a date for an already delayed meeting to map out China’s longer-term economic plans is another disappointment for investors.

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