China’s decision to issue a record $411 billion in special treasury bonds in 2025 marks a significant shift in its fiscal strategy, underscoring the urgency of addressing a challenging economic landscape. This unprecedented move reflects Beijing’s resolve to stabilise the domestic economy while advancing its strategic goals. Although the approach promises much-needed stimulus and long-term transformation, it also brings significant risks that cannot be ignored. The scale of the planned issue highlights China’s determination to tackle pressing economic concerns.

The funds are earmarked for initiatives aimed at boosting consumption, modernising infrastructure, and fostering innovation in advanced industries. Subsidies for consumers to trade in durable goods, incentives for businesses to upgrade equipment, and large-scale investments in sectors like electric vehicles and green energy are at the heart of this strategy. These measures aim to energise demand and position China as a........

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