China's Fiscal Strategy Hinges on US Election Outcome

Beijing's economic plans are influenced by potential shifts in US trade policies as it considers targeted stimulus measures.

China's National People's Congress Standing Committee is meeting to decide on fiscal measures amid economic challenges, including high youth unemployment and a struggling property market.
Chinese policymakers are cautious about announcing large-scale stimulus before understanding the US election results, which could drastically affect US-China trade relations.
Premier Li Qiang has expressed confidence in reaching China's GDP growth target of around 5% and highlighted the country's policy flexibility.
The potential fiscal package may focus on restructuring local government debt and recapitalizing state-owned banks, rather than a broad stimulus aimed at boosting consumption.
Market sentiment in China has improved recently, partly due to expectations of stimulus and stronger services activity, but uncertainty remains tied to the US election outcome.