China considers cutting $700 checks for all citizens due to COVID-19 economic struggles

Economists for the Chinese Communist Party are weighing the value of a cash infusion for Chinese citizens in the form of a check.

Strict COVID-19 precautions persist in China as the country still struggles to be rid of the viral pandemic. The government's zero-tolerance policy for COVID-19 infections has had cascading ramifications on China's economy and consumers.

Chinese economists are now saying a cash infusion might be what the country needs to get back on its feet.

"Central fiscal expenditures are important because the local finances are all in a tight situation right now, and even if there are some local governments that have a fiscal surplus, I don’t think they are that generous," said Director Mao Zhenhua of Renmin University's Institute of Economic Research.

Mao went on to claim China would best serve its consumer population by forgoing merchant coupons and non-cash vouchers in favor of electronic currency. Mao suggested vouchers worth approximately $700US.

"Many of the consumer vouchers we mentioned before are actually discount coupons from merchants, they don’t have a cash value," Mao added.

China recently confirmed its first COVID-19 death in nearly six months as the country deals with yet another recent outbreak of infections.... (Read more)

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