Photo: ru.freepik.com
This will be the largest government loan in the country's history. China's economy is still experiencing difficulties recovering from the COVID-19 pandemic and the strict restrictions imposed in this regard. It is assumed that the allocated resources will be used to support demand, provide financial assistance, upgrade equipment at production facilities, invest in advanced technologies and develop other innovative areas of activity.
The upcoming issue of national bonds for next year suggests a significant increase compared to 2024, when 1 trillion yuan worth of special treasury bonds were issued. Another reason for the decision to increase borrowing was Beijing's desire to reduce the impact of the increase in US customs duties on Chinese goods, which is expected to occur after Donald Trump takes office as President of the United States in January 2025.
