China: Changes and Challenges

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One of the questions that Viet Hustler raised when discussing the 2025 economic outlook is: When will China introduce fiscal stimulus packages and the policy direction of the Asian dragon next year (part 3 of the article).

In which, Viet Hustler emphasized 3 difficulties in issuing fiscal packages for the Chinese government:

1- How to prevent corruption when disbursing subsidies, with a massive bureaucratic apparatus…

2- The difficulty in government borrowing…

3- The short-term impact of economic subsidy packages compared to long-term issues in China's economic growth…

Economic reports on China from major banks also show that they perceive the “Japanification” process (Japanification) of China is happening faster than the case study itself, Japan. In 2025, the tariff policies of the new US president may continue to accelerate this Japanification process.

But it seems that Viet Hustler's summary of the 2025 economic outlook last week only analyzed the Chinese economy in a “passive” way through data.

However, China is also undergoing major regime changes (“regime change”) like other major economies in this phase: from changes in monetary policy to “proactive” fiscal policy from the government.

Of course, there are also new difficulties facing the Chinese economy that they must confront.

This week's macroeconomics article from Viet Hustler will focus on refining our views on China's economic outlook in 2025.

However, unlike last week's article (which relied heavily on objective reports from major banks), this week's article carries more subjective opinions from the author (referencing data from major economic news sources). Viet Hustler is also open to receiving counterarguments from readers on these views!

Disclaimer: The article contains many personal opinions - and is not investment advice!