MNI BRIEF: China Could Widen Fiscal Deficit-Ex-Finance Minister

China could widen the fiscal deficits of the central and local governments to support small businesses as the country is suffering from pandemic curbs and soft overseas demand, said Lou Jiwei, former finance minister during the Caixin Summer Summit on Saturday. The central government can enhance fiscal transfer payments to local governments whose income is “insufficient”, he suggested. China's exports face pressure on expected economic slowdowns in the U.S. and Europe and international supply chains need to be rebuilt, he said, pointing out “inappropriate” anti-Covid restrictions, particularly in regions including Yangtze River Delta, where supply and industrial chains are concentrated.