Economics
China Will Ramp Up Infrastructure Spending in 2020, JPMorgan Says
Highways run next to an under construction section of an elevated track for the China State Railway Group Co. High-speed (CRH) railway system in in Taizhou, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s fiscal stimulus is shifting back to a focus on infrastructure investment, away from the approach of cutting taxes for businesses the government favored in previous years, according to economists at JPMorgan Chase & Co.
“We expect no major further tax cuts in 2020, though the effect of tax cuts will linger into this year,” JPMorgan economists including Zhu Haibin wrote in a note. Infrastructure will be a “key beneficiary” of fiscal policy in the year and will contribute to the cyclical bottoming in the first half, he said.