Analysis: Why China’s 2023 Fiscal Policy May Be Less Expansionary Than It Seems

China’s proactive fiscal policy is likely to be less expansionary in 2023 than it seems even though the government set a higher official deficit-to-GDP ratio target, analysts estimate. The focus will also shift to supporting infrastructure investment in a bid to spur economic growth and away from the massive tax and fee relief of last year that was aimed at helping companies survive the disruption caused by stringent Covid-19 controls.