China's Economic Strategy Amidst Tariff Threats

In response to looming tariffs from the U.S., China is implementing a series of economic measures aimed at stabilizing growth. The government has injected $370 billion into the economy, cut interest rates, and provided support to property developers.

However, these actions primarily focus on restructuring existing debt rather than introducing new stimulus. With local government debt soaring to approximately $60 trillion, the need for a substantial stimulus package is becoming evident.

Analysts predict that an additional $5 to $10 trillion may be essential to bolster domestic demand. As the Politburo prepares for upcoming meetings, they are expected to adopt more proactive fiscal policies and unconventional adjustments to invigorate economic activity, particularly in the face of potential growth setbacks from U.S. tariffs.