“I think they have gradually come to realise that their longtime fiscal conservatism is problematic, and they need to really make fiscal policy more useful, make it more expansionary,” Huang said.
Agreeing with this, senior economist Xu Tianchen of the Economist Intelligence Unit (EIU) said this year’s lianghui could bring about more government conversations on spending, potentially leading to more action on this front.
Xu also noted China’s intent to increase funding from special treasury bonds this year. “(While) that is not within the headline budget, they represent extra fiscal firepower,” he told CNA.
Reuters reported in December last year, citing sources, that Chinese authorities had agreed to issue 3 trillion yuan worth of special treasury bonds in 2025. That would be the highest on record, marking a sharp increase from the 1 trillion yuan issuance in 2024.
Chinese state planners have not disclosed the planned value, only saying the issuance will go towards spurring business investment and consumer-boosting initiatives.
“GREATER EMPHASIS ON HOUSEHOLDS”
Observers note that these moves are aimed at boosting household-driven growth, which is gaining primacy in China as a troubled external landscape – particularly US tariffs dangled by Trump – threatens to cloud its export prowess.
EIU’s Xu highlighted how China’s policies used to be very heavily tilted towards investment in the manufacturing sector.
“But we’re starting to see a gradual shift towards a greater emphasis on households, on people. That is probably very important for China’s sustainable growth,” Xu said.
Chinese officials have made no bones about their domestic consumption push.
Among the latest exhortations came from Premier Li Qiang in a late February State Council study session, where he emphasised that “consumption must be placed in a more prominent position”, with greater efforts and more targeted measures needed.
