China Launches $1.4 Trillion Debt Relief Program, Holds Off on New Stimulus
- THE CHINA NOW
- Nov 11, 2024
- 2 min read
Summary
China rolls out a $1.4 trillion debt swap for local governments, delaying further stimulus for now.
Announcement follows expectations of enhanced fiscal measures in response to Trump’s re-election.
Analysts remain cautious as Beijing braces for potential trade tensions under Trump’s new presidency.
China unveiled a significant debt-relief initiative on Friday, offering local governments a lifeline of 10 trillion yuan ($1.4 trillion) to restructure “hidden” debts. However, officials refrained from launching additional stimulus packages, a decision seen as preserving resources for a possible escalation in trade tensions under President-elect Donald Trump, who has proposed substantial tariffs on Chinese goods.
