China to step up efforts to implement more proactive fiscal policy in 2025: experts

China will ramp up efforts to implement a more proactive fiscal policy in 2025, as adopted at the recently concluded annual Central Economic Work Conference, according to experts.

The conference, which was held in Beijing on Wednesday and Thursday, outlined priorities for maintaining steady economic growth in 2025.

According to the conference, it is important to implement more proactive and effective macro policies and expand domestic demand.

The term "more proactive" signals increased intensity compared to this year's measures, suggesting that the Chinese government will fully use the fiscal policy, according to Yang Zhiyong, head of the Chinese Academy of Fiscal Sciences.

"To make greater efforts is to make full use of the favorable positive factors of our fiscal policy space. The fiscal deficit ratio is relatively low, and there is room for raising the deficit ratio. Therefore, raising the fiscal deficit ratio can provide more funds to promote consumption and investment, and expand domestic demand, thus providing stronger policy support for the sustained recovery and growth of the economy," said Yang.

The phrase "more proactive" also represents the continuity and stability of the country's fiscal policy, indicating the proactive stance of the Chinese government, said Luo Zhiheng, chief economist of Yuekai Securities.

"It sustains the overall fiscal policy tone. The addition of the word 'more' indicates our proactive stance, staying ahead of expectations. By making efforts as early as possible, we aim to deliver a stable expectation. The combination and utilization of fiscal policies will enable policies to show their effects as early as possible, thereby expanding overall demand," said Luo.

Experts also said that the Chinese government will make better use of tools in the policy kit, such as special bonds, to unlock potentials.

The Chinese government also pledged to increase the issuance of ultra-long special treasury bonds and local government special-purpose bonds, and optimize the structure of fiscal expenditure, according to the meeting.

This approach incorporates the benefits of both new and existing policies, according to Yang.

"By optimizing fiscal expenditure structure, we aim to derive benefits from existing policies, which is a vital measure. Through effective fiscal management, we can enhance the efficiency of fiscal funds, thereby making the effects of the policy more pronounced," said Yang.

China to step up efforts to implement more proactive fiscal policy in 2025: experts

At least 14 people were killed in the Gaza Strip over the past 24 hours as homes collapsed and tents sheltering displaced families were flooded during a powerful winter storm, Gaza's Civil Defense said on Friday.

The fatalities included three children who died from hypothermia, while others were found under the rubble of homes destroyed by heavy rain and strong winds, particularly in Gaza City and northern areas of the enclave, the Civil Defense said.

From Wednesday evening through Friday, the Gaza Strip has been battered by heavy storms and cold weather, leaving the displaced families facing harsh and unsafe conditions. Fragile tents and makeshift shelters, where at least 1.5 million Palestinians are living, offer no real protection from the storms.

Mahmoud Bassal, spokesman of the Palestinian Civil Defense said on Friday that the severe weather has intensified the humanitarian emergency, with the death toll standing at 13 at the time of his statement.

"The weather system affecting Gaza is extremely severe. We are talking about house collapses and the complete destruction of more than a dozen buildings. Dozens of other buildings have partially collapsed, which is why we are reporting 13 victims. More than 90 percent of citizens' tents in Gaza have been completely flooded. In some areas, water levels have risen to more than one meter," he said.

Hiba Al-Yazji, a displaced Palestinian, recalled how a sudden massive influx of water inundated her tent during the night.

"We were flooded. It was like a massive surge of water. I stood in our tent at night with my daughter, and it felt like a pool, with water flowing in from all sides. Since Wednesday, I haven't slept at all, I swear to that. We spread our mattresses out to dry, and now it's going to rain again. Everything in my kitchen has fallen apart," she said.

Other displaced Palestinians have faced similar hardships amid the winds and downpours.

"We have been suffering since the weather system began. I haven't slept for three days. Whenever the rain intensifies, we keep moving inside the shelter. Last night, the plastic roof collapsed on us because of the heavy rain. We spent the night pushing water out, afraid it would flood our tent. My little daughter couldn't sleep at all last night because of the cold," said Dina Khattab.

At least 14 killed as winter storms batter Gaza: civil defense