Ex-PBOC adviser calls for 2008-style mega stimulus to revive China’s economy
A former People’s Bank of China (PBOC) adviser has called for a massive infrastructure-led stimulus, urging Beijing to model its next five-year plan on the scale of the 2008 spending package that helped lift China out of the global financial crisis.
Yu Yongding, a former member of the central bank’s monetary policy committee, said China should launch a large-scale investment drive starting in 2026 to reignite domestic demand and counter weakening trade.
He proposed a program similar to the 4 trillion-yuan ($562 billion) package rolled out in 2008 — roughly 12% of GDP at the time — which would equate to about 16 trillion yuan today.
- current situation is inadequate demand
- infrastructure investment would deliver immediate economic results,
- direct consumption measures are useful but insufficient to fill the gap in spending
- infrastructure projects could raise household incomes, stimulate demand for construction materials, and shift growth toward internal rather than export-led momentum
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Yu’s proposal highlights the growing policy debate in Beijing over how to revive growth as exports fade. Markets may interpret such calls as pressure for renewed fiscal easing, potentially supporting infrastructure-linked sectors and commodity demand.
