Trump’s transactional approach to diplomacy and his “America First” policy have raised doubts about the consistency and reliability of US support for the island. For instance, Trump has suggested Taiwan should pay for US protection. Against this backdrop, the Taiwanese government has shifted to fostering self-reliance and strengthening social cohesion as part of its defence … Read more
China’s leaders pledged on Thursday to open the country’s coffers wider and provide a much-needed jolt to domestic demand in a statement issued after this year’s central economic work conference. This would be accomplished, they said, by raising the fiscal deficit ratio and increasing the issuance of treasury bonds in the coming year. The world’s … Read more
China will adopt a “more active” set of policies to expand domestic demand in 2025 with “moderately loose” monetary tools – language not used by high-level authorities since the global financial crisis in 2009 – officials said following a meeting on Monday. A summary statement issued after a gathering of the country’s Politburo – a … Read more
Traditionally, 11.11, alongside the mid-year 6.18 shopping festival, has served as a key barometer for consumer confidence, which has become a focal point of China’s efforts to boost its slowing economy. But in the absence of official figures, analysts and media are left to interpret third-party data. E-commerce data firm Syntun, a popular reference point, … Read more
SHANGHAI: China’s consumer inflation rate slowed in October, official data showed Saturday (Nov 9), in a sign that demand remains sluggish in the world’s number two economy. The slowdown comes as authorities have been seeking to boost domestic activity as a property crisis weighs on confidence. The consumer price index (CPI), a key measure of … Read more
The National People’s Congress (NPC) Standing Committee, China’s top legislative body, will convene in Beijing on Monday to discuss a wide range of issues. A large fiscal stimulus, recommended by several prominent economists and hotly anticipated by investors, is likely to be among them. As markets speculate over the potential size of a fiscal package … Read more
WILL BEIJING’S PRIORITIES CHANGE? Until recently, Xi’s stimulus was entirely a domestic affair. Ministry-level officials have promised the largest one-time debt swap in recent years to improve municipal finances. The state will also buy unsold housing to stabilise property prices, as well as boost banks’ capital buffer to increase their willingness to lend in a weak economy. All these … Read more
The 41-year-old had lost around 80 per cent of the 2 million yuan (US$283,000) she invested over a decade. This week she was among the hundreds of millions of Chinese rushing back to the market on a wave of optimism after the government announced new measures to revive the economy. “I think the top leadership … Read more
China’s localities should reduce their dependence on land and tax incentives and instead strengthen industrial chains and improve their business environments to attract investment, a state-owned newspaper has urged in a front-page commentary. Aggressive land deals, tax breaks and subsidies – frequently used to drive investment by local governments in past decades – have led … Read more
PRESSURE ON LOCAL GOVERNMENTS A basic fact about China’s fiscal system is that local governments do almost all of the spending, but rely on the centre for revenue to an extent that is rare elsewhere in the world. Localities bear most of the responsibility for education, health, social security and housing, in addition to obvious … Read more
