During the G20 Finance Ministers and Central Bank Governors Meeting the finance minister, Lou Jiwei says that the fiscal stimulus must be structured to ensure the sustainability of the debt, as the room for the country's reforms is changing, the delay in structural reform will erode the space for reform.

ANBOUND’s scholars points out that the views expressed by Lou Jiwei on fiscal policy should be taken seriously as he is hinting that China’s fiscal situation is not optimistic and we are only "1km away from the cliff" as the room for reform is getting narrower.