China's Economic Goals Under Pressure Amid Trade Tensions

Chinese government advisers recommend a 2024 economic growth target of around 5.0%, aiming to counteract the impact of U.S. tariff hikes with stronger fiscal stimulus. The decision will be finalized at the Central Economic Work Conference, influencing global markets and China's future economic strategies.

The Chinese government is facing increasing pressure to establish ambitious economic growth targets amid rising tensions over U.S. tariffs. Advisers suggest maintaining a 2024 goal of around 5.0%, despite global market predictions of a gradual slowdown in China's expansion.

Insiders believe that Beijing's aggressive stance shows readiness to bolster domestic demand, offsetting potential export losses due to tariffs imposed by the U.S. under President Trump. Additionally, economists within China warn that heavy reliance on stimulus could lead to financial instability, urging for balanced reform initiatives.

As economic strategies unfold, China is poised to adjust its fiscal policies, potentially expanding its budget deficit to manage infrastructure funding and consumer support. Final decisions await the Central Economic Work Conference, a key event anticipated by global stakeholders.

(With inputs from agencies.)