China’s Factory Expansion Slows: Experts Call for More Stimulus

China’s factory activity in December didn’t meet expectations. The manufacturing PMI was 50.1, just above the 50-mark, but below the expected 50.3. Experts say Beijing’s stimulus efforts aren’t enough to boost the economy significantly.

Despite some recovery signs since September’s stimulus measures, China’s economy struggles. Challenges include weak consumer demand and a long-term property market downturn.

Consumer inflation hit a five-month low in November. Export and import figures also disappointed. Industrial profits have fallen for four straight months, with a 7.3% drop in November from the previous year.

To combat these issues, China’s finance ministry announced more fiscal support for next year. This includes expanding trade-ins for consumer goods, raising pensions, and increasing medical insurance subsidies. Additionally, China plans to issue 3 trillion yuan ($411 billion) in special treasury bonds for more stimulus.