China urged to adopt more proactive fiscal policy amid Iran-Israel war, trade war risks
Beijing may need to spend more to preserve growth and long-term stability, central bank adviser says
Beijing should adopt a more proactive fiscal policy in response to rising global uncertainties, particularly following the outbreak of war in the Middle East, a central bank adviser said on Tuesday.
“What we see at the moment is rising uncertainties. We are very much worried about deglobalisation, trade, protectionism and so on,” he told a panel at the Summer Davos forum in Tianjin.
“If whatever outside uncertain factors cause a downturn of the domestic economy, I personally would be very much in favour of a proactive fiscal policy.”
On Monday, US President Donald Trump said that Israel and Iran had agreed to a “complete and total ceasefire” set to take effect within 24 hours. Both Iranian state television and the Israeli Prime Minister’s Office confirmed the truce on Tuesday.