China to implement more proactive fiscal policy: vice finance minister

China's Ministry of Finance plans to adopt a more proactive fiscal policy in 2025, as part of China's efforts to achieve high-quality economic development, said Vice Minister of Finance Liao Min on Friday at a press conference in Beijing.

Officials briefed the media on achievements of China's high-quality economic development, and announced detailed plans for a more proactive fiscal policy in 2025, in line with the Central Economic Work Conference's directives.

Liao said that a more proactive fiscal policy is primarily reflected in the three aspects of higher intensity, greater efficiency and better timing.

For its intensity, the policy will fully utilize available policy space to enhance counter-cyclical adjustments, according to Liao. This includes increasing the fiscal deficit ratio, boosting expenditure, and raising transfer payments to local governments to ensure basic living standards. There will also be a larger issuance of government bonds, including ultra-long-term special bonds and local government special bonds.

Regarding efficiency, the policy aims to optimize expenditure structures, with a focus on improving people's livelihoods, promoting consumption, and increasing long-term growth potential.

"We will enhance support for stable employment. We aim to improve boost consumption by increasing residents' income, refining the social security system, fostering new consumer industries, improving consumption conditions and other measures. Focusing on nurturing new quality productive forces, we will also support key areas such as education, talent development, scientific research, rural revitalization, and green development. Additionally, there will be efforts to improve fiscal management to ensure effective use of all the input," he said.

According to the official, on timing, the ministry will take early actions to enhance the policy's foresight and relevance. This involves accelerating expenditure to quickly form actual spending, which will stimulate more social investment and maximize policy effectiveness.

Furthermore, the ministry will deepen fiscal and tax system reforms, continuously work on preventing and resolving risks in key areas, and ensure stable and sustainable fiscal operations.

China to implement more proactive fiscal policy: vice finance minister

Major U.S. stock index futures plummeted in after-hours trading on Wednesday following President Donald Trump's announcement of the so-called "reciprocal tariffs" on trade partners.

As of 18:35 Eastern Time, the Dow Jones Industrial Average futures had dropped 2.43 percent, the S and P 500 futures were down 3.6 percent, and the Nasdaq Composite futures had slumped 4.35 percent.

Meanwhile, crude oil futures traded on the New York Mercantile Exchange fell more than 2.5 percent in after-hours trading.

Amid widespread opposition, Trump announced in the White House on Wednesday that he is imposing the so-called "reciprocal tariffs" on trading partners.

Displaying a chart illustrating "reciprocal tariffs," Trump announced that the United States has established a "minimum baseline tariff" of 10 percent on practically all imported goods, plus even higher rates on certain trading partners, including China, the European Union, Vietnam, Japan, India, South Korea and Thailand.

Despite Trump's claim that higher tariffs will help bring in revenue for the government and revitalize U.S. manufacturing, economists have warned that such measures will push up prices for U.S. consumers and businesses, disrupt global trade, and hurt global economy.

US stock index futures slump following reciprocal tariffs announcement