Since China exports about $500 billion worth of goods to the US every year, the government wants to strengthen domestic consumption to make up for any lost sales abroad.
Before COVID-19, retail sales in China typically grew 8–9% each year. Officials hope to return to that level by supporting consumer demand.
Since any new government spending must be approved by China’s top lawmakers, a key meeting of the National People’s Congress Standing Committee will take place soon, and approval might be given then.
Even if the plan is approved, officials will decide later exactly how and when to roll out the measures, depending on how the economy performs, says the news report.
Additionally, China’s central bank is expected to cut the reserve requirement ratio (making it easier for banks to lend), and possibly lower interest rates by June.
The country will also use targeted tools to support exports, consumer spending, and tech innovation. The media reports also suggests that China plans to stay focused on high-quality, sustainable growth rather than taking drastic measures.