China has rolled out its largest stimulus package since 2020 to counter the Q1 growth slowdown, deploying targeted measures including:
• 50 billion yuan ($7B) tax cuts for tech firms
• Fast-tracked approval for 8,200 infrastructure projects
• Forced lending quotas for “strategic” industries
“The stimulus is surgical – avoiding old-school flood irrigation,” explained PBOC adviser Liu Yuanchun.
Key allocations:
✓ 45% to semiconductor self-sufficiency
✓ 30% to EV supply chains
✓ 25% to AI infrastructure
But challenges remain:
→ Local governments face $900B funding gap
→ Corporate debt hits 180% of GDP
→ Stimulus multiplier effect halved since 2015
