China’s Economic Support Plan Had One Job, And It’s Probably Failed

Carl Hazeley

3 months ago1:01 min

China’s Economic Support Plan Had One Job, And It’s Probably Failed

China just announced a $146-billion economic rescue package, focused on infrastructure spending, and, frankly, no one seems impressed.

Typically, announcements about new economic “stimulus” are welcomed by investors and economists alike, but stock and bond markets barely took notice of this one, and economists were quick to shrug it off.

In essence, economists don’t think this package, which includes money that went unused in previous packages, will do enough to fix the damage from repeated Covid lockdowns and a new property market slump. What’s more, given that the government has said it won’t “flood the economy with excessive stimulus”, people are getting the sense that this might be all there is, at least for a while. That’s likely to have an impact on consumer and business confidence

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