China Boosts Spending with Surprise Wage Increases for Millions

Millions of government workers in China received unexpected wage increases aimed at boosting consumer spending and supporting the slowing economy. This move follows increased budget deficits, with monthly wage increments spread across various public sector roles. However, concerns remain about funding and the exclusivity of the strategy.

Millions of government employees in China have seen their pay packets increase unexpectedly, as government officials strategize to stimulate consumer spending and halt the nation's economic slowdown.

The increase, which affects 48 million public sector workers, was not publicly announced but was reportedly implemented with immediate effect, providing an economic input between $12 billion to $20 billion.

While the rationale signals a boost in spending power among civil servants and other public workers, doubts persist about the plan's broad applicability and its financing framework, as concerns about China's economic struggles continue to linger.

(With inputs from agencies.)