China's Fiscal Policies under the COVID-19 Pandemic in 2020

With the COVID-19 outbreak and pandemic, the year 2020 has become a crucial year for the Chinese Government to prevent further economic crises. At the National People’s Congress in May, an aggressive fiscal policy was adopted that contains expansion of the budget deficit, issuance of special government bonds for countermeasures against COVID-19, and expansion of new issuance quotas for special local bonds. These means are expected not only to avoid economic meltdown but also to build “dual circulation” during the 14th Five-Year Plan (2021–2025).