Economics

China Holds Back Fiscal Spending When Economy Needs It Most

Photographer: Gilles Sabrie/Bloomberg
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China’s economic slowdown is putting the spotlight back on fiscal stimulus -- but Beijing isn’t opening the spending taps just yet.

While the U.S. government is pushing to raise its debt ceiling and countries elsewhere keep fiscal policy loose to support their pandemic-hit economies, China could be on track for a much smaller budget deficit than targeted, or even its first balanced budget in about four decades.