Recently, China’s financial spending surged by 10.7% in the first 6 months from a previous year, the finance ministry stated, underlining the administration’s proposal to support the slowing economy. Liu Jinyun—an executive with the ministry—said that the financial revenue surged by 3.4% in the January–June period from a year earlier. At a briefing, Liu said, “In the first half, the fiscal spending growth countrywide was faster significantly than revenue progress, providing a solid support for investment in imperative areas.” Yet fiscal spending progress in the first half alleviated from the 15% rate in the first quarter, as per to finance ministry statistics.
The information in recent time demonstrated China’s economic growth declined to 6.2% in the second quarter—which is its weakest rate in last 27 Years—since demand at home and overseas weakened in the face of rising US trade pressure. The ministry said that China’s tax proceeds increased by only 0.9% in the first half from a past year, which correlated with a 5.4% surge in the first quarter. But non-tax proceeds during that span climbed by 21.4% from a past year. Hao Lei—a second official at the ministry—reported that the central administration has stepped fund shifts to regional administrations to aid in easing their spending strains.
On a related note, recently, ex-Trump negotiator stated that China might be hinting it is going hard-line, but it still needs a trade deal. Clete Willems—former White House trade negotiator—said to CNBC that China might have just indicated it is going more inflexible on trade, but in fact, it can be a good thing. In the last week, Beijing added a new associate to its negotiating panel, Commerce minister Zhong Shan, who has seen by many executives in Washington as a rigid. Analysts say it can be an indication that Chinese leader Xi Jinping is firm on trade.