{"id":147497,"date":"2025-10-27T08:42:11","date_gmt":"2025-10-27T08:42:11","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/147497\/"},"modified":"2025-10-27T08:42:11","modified_gmt":"2025-10-27T08:42:11","slug":"china-should-step-up-borrowing-to-boost-domestic-demand-economist-says","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/147497\/","title":{"rendered":"China should step up borrowing to boost domestic demand, economist says"},"content":{"rendered":"<p>China\u2019s central government should borrow more to <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/economy\/policy\/article\/3330134\/chinas-communist-party-meets-press-after-fourth-plenum-wraps?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">lift domestic demand<\/a> through supportive monetary and fiscal policy, a Chinese economist has urged.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cIf I can make a recommendation, what I think we could also do is to put together a more aggressive macroeconomic policy using central government leverage or adding central government leverage,\u201d Huang Yiping, a professor at Peking University and dean of its National School of Development, said at the Bund Summit in Shanghai on Saturday.<\/p>\n<p>The potential injected liquidity can be used to repair the balance sheets of household enterprises, financial institutions and local governments, which have all been struggling financially primarily due to a <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/economy\/china-economy\/article\/3327455\/can-easing-property-curbs-3-big-cities-help-give-chinese-consumption-boost?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">prolonged property crisis<\/a> in the country, Huang said during a panel discussion.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cIf we can do that, the central government\u2019s leverage room will rise, but I think we\u2019re going to see a big boost to domestic demand,\u201d said Huang, who is also a member of the monetary policy committee of the People\u2019s Bank of China.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The outstanding debt of China\u2019s central government accounted for about 22 per cent of the country\u2019s gross domestic product, Huang said, placing it in the lower-middle tier globally.<\/p>\n<p>Along with the property sector and <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/economy\/china-economy\/article\/3329045\/latest-chinese-economic-data-shows-fight-against-deflationary-pressures-not-yet-won?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">weak domestic demand<\/a>, the world\u2019s second-largest economy has been grappling with other economic challenges, including a trade war with the United States and a rapidly ageing population.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s central government should borrow more to lift domestic demand through supportive monetary and fiscal policy, a Chinese&hellip;\n","protected":false},"author":2,"featured_media":147498,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[1793,86964,79,79411,381,86966,25663,179,18,86965,19,17,86963,64286,86962,24390,2711,86967,3429,384],"class_list":{"0":"post-147497","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-beijing","9":"tag-bund-summit","10":"tag-business","11":"tag-central-committee","12":"tag-china","13":"tag-chinas-central-government","14":"tag-domestic-demand","15":"tag-economy","16":"tag-eire","17":"tag-huang-yiping","18":"tag-ie","19":"tag-ireland","20":"tag-local-governments","21":"tag-ministry-of-finance","22":"tag-national-school-of-development","23":"tag-peking-university","24":"tag-peoples-bank-of-china","25":"tag-property-crisis","26":"tag-trade-war","27":"tag-united-states"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115445245198552606","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/147497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=147497"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/147497\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/147498"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=147497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=147497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=147497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}