China prepares a large-scale financial operation to stimulate the economy.

China will issue special treasury bonds worth 411 billion dollars in 2025

The Chinese authorities have announced the issuance of special treasury bonds worth 411 billion dollars. This is almost three times more than the bond issuance this year, which amounted to 1 trillion yuan, Reuters reports.

This decision has been made to support the Chinese economy, which is facing challenges. Among these challenges are the expected increase in tariffs on Chinese imports from the US if Donald Trump returns to the presidency, problems in the real estate sector, and the high level of debt among local governments.

The money raised from this issuance will be used to support the economy, specifically to stimulate consumer demand through subsidies for purchasing cars and household appliances, upgrading industrial equipment, and developing innovative sectors.

Part of these funds will be spent on infrastructure projects, including the construction of railways and airports. The government also plans to support state banks that are facing declining profits and increasing non-performing loans.

The volume of new bonds will amount to 2.4% of China's GDP for 2023. The government hopes to achieve economic growth of 5% by 2025, despite increasing the budget deficit to a record 4% of GDP.

This large-scale stimulus plan indicates that China is trying to strengthen its domestic market and reduce its dependence on exports amid growing global economic challenges.