China should launch a stimulus package of at least 10 trillion yuan (US$1.42 trillion) in a year or two to revive economic momentum, a former top government adviser has said.The call from Liu Shijin, former deputy director of the State Council’s Development Research Centre, comes as China grapples with weakening domestic demand and a prolonged property slump.
The suggested stimulus should be primarily funded by ultra-long-term special bonds and should focus on addressing gaps in basic public services, Liu told the China Macroeconomy Forum hosted by Beijing’s Renmin University on Saturday.
“[The stimulus plan] should closely coordinate with demand-side structural reforms, to create a combined effect of boosting consumption, stabilising growth, and mitigating risks. This includes a stimulus scale of 10 trillion yuan,” he said.
“A key area is to significantly improve basic public…
