Key facts
- Economists Yu Yongding and Huang Yiping are urging increased fiscal spending in China.
- They also called for greater use of leverage to support local government and business balance sheets.
- The economists believe these measures are necessary to boost consumer confidence and purchasing power.
- The statements were made at the Caixin Summer Summit in Hangzhou.
Two prominent Chinese economists have urged the central government to implement more robust fiscal policies to counteract weak domestic demand and bolster consumer confidence. Yu Yongding, a member of the Chinese Academy of Social Sciences, and Huang Yiping, dean of the National School of Development at Peking University, both stressed the need for increased government spending.
During a dialogue at the Caixin Summer Summit in Hangzhou, the economists highlighted that greater policy support is crucial to enhance consumer purchasing power. They also suggested that increasing leverage could be beneficial for repairing the balance sheets of local governments and businesses, which have faced significant financial strain.