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China's 2024 economic stimulus

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  • Kerry Liu

Abstract

This study reviews China's largest post‐COVID economic stimulus, launched in September–October 2024, examining its background, policy contents, early effects, and broader implications. Specifically, triggered by worsening economic conditions, the package aimed to stabilise stock and real estate markets, support consumption, and ease local financial stress while continuing strategic hi‐tech development. By March 2025, results were mixed – weak demand persisted, but favoured sectors showed gains. This episode illustrates China's balancing act between short‐term fixes and long‐term ambitions, development and security, and reflects growing state intervention in the economy. It offers insights for understanding China's evolving policy logic and navigating debates on its future trajectory, including the ‘Peak China’ discourse.

Suggested Citation

  • Kerry Liu, 2025. "China's 2024 economic stimulus," Economic Affairs, Wiley Blackwell, vol. 45(3), pages 440-460, October.
    • Handle: RePEc:bla:ecaffa:v:45:y:2025:i:3:p:440-460
    DOI: 10.1111/ecaf.70009
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    References listed on IDEAS

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    1. Damian Pudner, 2025. "Rethinking monetary policy: The case for nominal GDP targeting," Economic Affairs, Wiley Blackwell, vol. 45(2), pages 323-331, June.
    2. Kunyu Tao, 2015. "Assessing Local Government Debt Risks in China: A Case Study of Local Government Financial Vehicles," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(5), pages 1-25, September.
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