China should step up borrowing to boost domestic demand, economist says

South China Morning PostCenterEN 1 min read 100% complete by Ji SiqiOctober 27, 2025 at 08:00 AM

AI Summary

short article 1 min

Chinese economist Huang Yiping has recommended that China's central government increase borrowing to stimulate domestic demand through more aggressive macroeconomic policies. Speaking at the Bund Summit in Shanghai on Saturday, Huang suggested using this borrowed money to support household enterprises, financial institutions, and local governments struggling due to a prolonged property crisis. He noted that with central government debt currently accounting for about 22% of GDP, there is room for increased leverage. This strategy could help address economic challenges including the property sector issues, weak domestic demand, trade tensions with the United States, and an ageing population.

Key Topics & Entities

People’s Bank of China 50% National School of Development 50% Shanghai 50% Peking University 60% Bund Summit 60% Huang Yiping ×480% China ×490%

Keywords

china 90% domestic demand 85% central government borrowing 80% macroeconomic policy 75% property crisis 65% huang yiping 60% bund summit 55% trade war with the us 50% rapidly ageing population 45% monetary and fiscal policy 40%