The Chinese government has approved a $1.4 trillion plan to revitalize its economy, primarily to help local governments refinance crippling debts that threaten their fiscal stability.
China's economy has struggled to regain momentum this year, particularly due to the collapse of the real estate market, which has left households hesitant to spend.
The local governments, historically reliant on borrowing for infrastructure, have amassed debt levels that have become unsustainable, exacerbated by the impacts of the pandemic.
Only after the onset of the Trump presidency did China's leadership undertake significant economic stimulus measures, shifting from a preference for state-led growth to more proactive consumer support.
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