21.04.202501:32:10UTC+00China Boosts Budget Spending in Q1 to Offset Trade War Impact

In the first quarter, China significantly accelerated its budget spending at its fastest rate since 2022, dedicating approximately 22% of planned expenditures to mitigate the impact of weakening foreign demand amid a continuing tariff war. This effort is part of a comprehensive strategy designed to bolster domestic demand and support sectors affected by ongoing trade disputes. The increased spending focuses on crucial areas such as infrastructure, technological innovation, and social welfare, with the aims of creating jobs, enhancing confidence, and sustaining economic growth. Nevertheless, several leading banks have lowered their projections for China's 2025 growth to 4% or less, falling short of the government's target of around 5%. In response, officials are prioritizing the implementation of measures discussed at last month's parliamentary session and have expressed their willingness to introduce additional stimulus initiatives if necessary. By taking decisive early action, Beijing aims to protect the economy and maintain its growth trajectory amidst external challenges.