MNI BRIEF: China Must Quicken Reforms To Boost Domestic Demand
MNI (BEIJING) - China will need to boost consumption via structural reforms to offset the possible impact of U.S. tariff increases, said Liu Shijin, former vice president of the Development Research Center of the State Council in Beijing on Wednesday.
The central government should increase spending on significantly improving public services for lower income groups, in particular elderly and medical care, and education, said Liu, during the 9th China Global Think Tank Innovation Forum held by Center For China & Globalisation. Authorities should also accelerate urbanisation via the marketisation of rural lands, and restore private business confidence to help create more job opportunities.
Advisors told MNI that the country will likely increase support for consumer trade-ins via additional special treasury bonds next year, while providing low-income groups subsidies to boost domestic demand. (See MNI: Special Treasuries To Boost China's Consumers In 2025)