China's $1.4 Trillion Plan Amid Debt, Trade Tensions

China has announced a significant fiscal package, amounting to 10 trillion yuan ($1.4 trillion), aimed at addressing the hidden debt crisis of local governments and supporting the economy amidst the potential trade tensions following Donald Trump's re-election. The plan focuses on refinancing local government debts, involving a 6 trillion yuan allocation in special bonds to be used over three years and an additional 4 trillion yuan approved for debt swaps. Finance Minister Lan Fo’an has indicated that more aggressive fiscal policies could be introduced next year. Investors and markets have reacted with mixed feelings, as the package does not include direct fiscal stimulus measures. The Chinese government is also preparing for potential impacts of Trump's tariff threats, which could affect exports and economic stability. Despite the planned measures, analysts remain cautious about their effectiveness in directly boosting consumer spending.