China's government is signaling that it will do more to support its economy, even as it quietly reduces how much it leans on the US financial system, a dual track that became more visible this week.
China's finance minister, Lan Foan, wrote in an article published on the ministry's website that officials need to keep carrying out existing economic policies and also develop new, highly targeted measures in the months ahead to help the country meet its 2026 growth target. The comments come as the world's second largest economy has been contending with a slowdown, a familiar theme over the past couple of years as China has worked to shift its growth model away from heavy investment and exports and toward domestic consumption.
At the same time, reporting out of the region describes Beijing as building a larger financial safety net around its currency, the yuan, while reducing its exposure to US Treasury bonds. This comes in the wake of what was described as a cordial summit between President Xi Jinping and President Trump, which had eased some of the trade friction between the two countries. Even with warmer relations, China appears to be hedging, building financial buffers that give it more room to maneuver regardless of how the US-China relationship develops.
Household spending offered one encouraging data point during the period. A major rail hub in Guangzhou, in southern China, handled more than a million passenger trips on October 1 alone, the start of the country's Golden Week holiday, with bullet trains departing as often as every 40 seconds at peak times. That kind of travel surge is often read as a sign that ordinary consumers are still willing to spend on trips and leisure, even while the broader economy slows.
Watch for more detail on the specific new fiscal measures China's finance ministry has promised, as well as any further reporting on how much of its US Treasury holdings Beijing continues to trim.
Why is China adding stimulus?
Its economy has been slowing, and officials want targeted new measures to help meet the government's 2026 growth target.
What is Golden Week?
It is a major Chinese national holiday period in early October, traditionally one of the busiest travel and spending periods of the year.