China loosens purse strings to boost demand as central economic work conference ends

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 second-largest economy must complete the tasks set out for 2021 to 2025 in a “high-quality” way, state broadcaster CCTV reported, citing the document released following the conclusion of the closed-door conclave in Beijing.

This year’s national targets for social and economic development will also be reached soon, policymakers said.

“While the impact of external changes deepens and the Chinese economy still faces many difficulties and challenges, we must realise that China’s upward economic trend has not changed yet,” read the statement.

Special attention was given to the cutthroat nature of life and work within many industries – a phenomenon known as neijuan or “involution” – with leaders naming it explicitly as a source of economic friction.