China's Economic Strategy Amid U.S. Trade Tensions

China plans to boost economic stability by increasing its budget deficit, expanding debt issuance, and loosening monetary policies in response to trade tensions with the U.S. This was announced at the Central Economic Work Conference, with measures to counteract tariff threats impacting growth and industry.

China announced plans to bolster its economic stability by expanding its budget deficit, increasing debt issuance, and relaxing monetary policies to counter anticipated trade tensions with the United States.

This was revealed by state media after the Central Economic Work Conference, an annual agenda-setting meeting. The measures come as the world's second-largest economy faces challenges from a real estate crisis and weak domestic demand, compounded by the prospect of heightened U.S. tariffs.

This dovish economic signaling reflects China's readiness to prioritize short-term growth, with officials outlining intentions for looser monetary policies and proactive fiscal measures. The ultimate size of these stimuli is expected to be influenced by upcoming U.S. tariff announcements.

(With inputs from agencies.)