China reportedly planning record-high budget deficit in 2025 to boost spending

China plans to raise its budget deficit to a record high in 2025 in a bid to revive its slowing economy, Reuters reported.

Raising the country’s target deficit to 4% of GDP, up from 3% this year, is in line with Beijing’s pledge last week to pursue a “more proactive” fiscal policy — plans that will take on greater urgency with the return of Donald Trump to the White House.

China’s economic woes give the US more leverage to pressure Washington’s allies to follow Trump’s tariff proposals by imposing their own sweeping trade controls on Beijing, Rhodium Group analysts argued.

If US-aligned countries don’t react to the expected measures, it “will cause spillovers of those [Chinese] exports into their own markets,” they said.