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Economists Clash Over China's Growth Strategy and Debt Risks

12/5/2025

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Summary

Story summary

Liu Xiaoshu, a leading Chinese economist, warns against relying on stimulus for short-term growth, citing debt risks and a potential vicious cycle.
Lian Ping supports higher government spending to boost consumption, arguing China's fiscal situation remains stable.
Fitch Ratings projects China's 2025 deficit at 8 percent of GDP and debt at 68.5 percent.
The government targets about 5 percent growth in 2025.

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Story summary

Liu Xiaoshu, a leading Chinese economist, warns against relying on stimulus for short-term growth, citing debt risks and a potential vicious cycle.
Lian Ping supports higher government spending to boost consumption, arguing China's fiscal situation remains stable.
Fitch Ratings projects China's 2025 deficit at 8 percent of GDP and debt at 68.5 percent.
The government targets about 5 percent growth in 2025.