Analysis: China’s Fiscal Spending Will Reach a Record High in 2022

With the conclusion of China’s “Two Sessions,” the direction of the government’s expansionary fiscal policy has become clear. Overall, we believe that the intensity of China’s fiscal spending will reach a record high this year. Fiscal policy will play an important role in the country’s counter-cyclical measures, and the three main tools to be used are infrastructure investment, transfer payments, and tax cuts and refunds.