China Signals Zero Tolerance for Sharp Economic Slowdown With Rare Steps

Chinese President Xi Jinping signaled that a sharp slowdown in growth and lingering deflationary risks won’t be tolerated, making a series of rare policy moves to boost the economy while refraining from massive stimulus.

The government increased its headline deficit on Tuesday to the largest in three decades and unveiled a sovereign debt package that marked a shift from its traditional model for fiscal support. Xi also made an unprecedented trip to the central bank — sending a strong message about his focus on the economy.