{
  "id": 210429,
  "title": "China needs a stronger yuan and ‘fiscal boost’ to drive near-term growth: Goldman Sachs",
  "url": "https://urgent.news/2026/08/06/china-needs-a-stronger-yuan-and-fiscal-boost-to-drive-near-term",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-06T08:00:06.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/economy/china-economy/article/3363139/china-needs-stronger-yuan-and-fiscal-boost-boost-near-term-growth-goldman-sachs"
  },
  "original_language": "en",
  "account": "Goldman Sachs economists argue that China should gradually let its currency appreciate to avoid foreign protectionist actions and stimulate domestic spending, which would help meet its growth goals. The economists, Kamakshya Trivedi and Hui Shan, discuss a split economy, with weak domestic demand and robust exports, leading to a renewed discussion on whether demand support or currency appreciation is the best course.\n\nThe yuan exchange rate is said to be approximately 20% undervalued, with China's trade surplus reaching nearly US$1.2 trillion last year, and widening by US$126 billion in June. Despite challenges from the US-Israel war on Iran, China's exports have remained steady, driven by global technology trends and high demand for renewable energy products amidst an energy crisis.\n\nChina's trade imbalance has been exacerbated by protectionist policies from various nations. In response, Beijing has urged the nation to foster more balanced trade development after a meeting of the Politburo, a key decision-making group led by President Xi Jinping. Weak domestic demand, which declined in the second quarter, increases the risk of growth falling short of expectations, according to the economists.\n\nTo improve the economy's internal balance, a mix of fiscal stimulus to boost near-term growth and gradual structural changes that increase consumption's share of GDP expansion is recommended. While yuan appreciation and increased domestic spending can't resolve all issues, the combination would better position China to achieve its goals, according to the Goldman Sachs note.",
  "summary": "China should let its currency appreciate gradually to safeguard against foreign protectionist moves and boost spending to support domestic demand to meet its economic growth targets, according to Goldman Sachs economists. Data in the first half of 2026 continued to paint a picture of a bifurcated Chinese economy – with weak domestic demand and strong exports – which has led to a renewed debate…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}