China's Woes Could Spill Over: Let's Stay Vigilant

Beijing's consumption stimulus seems insufficient. It needs to scale back production, but the world can't count on it to do so. India must stay alert to any dumping by China of its excess

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As a tariff-happy America under Donald Trump puts China's export-oriented economy on notice with trade barriers, Beijing is doubling down on efforts to stimulate domestic demand.

Local consumption has weakened sharply in recent years, weighed down by a property slump, a market in which much Chinese savings are parked, even as income prospects have dimmed amid a jump in unemployment. This weekend's stimulus package reflects those concerns.

Under it, China's government has announced dozens of small moves aimed at easing people's financial burden and pushing fiscally strapped local administrations to clear their dues to businesses. The steps are wide-ranging, although mostly indirect and temporary, raising doubts over their efficacy.