Beijing/Shanghai | China needs to spend up to 10 trillion yuan ($2.1 trillion) over two years in stimulus funds to reflate its economy and return it to sustainable growth, investment bank economists said, as concerns grow that deflationary pressures are becoming entrenched.
The stimulus, which would be up to 2.5 times the “bazooka” package China enacted after the global financial crisis in 2008, would need to directly target households through social welfare spending rather than investment and infrastructure, they said.
