China Considers $1.4 Trillion Stimulus Amid Economic Challenges

Beijing plans a significant fiscal package to stabilize its economy, with potential adjustments based on the U.S. election outcome.

China's National People's Congress is set to approve over 10 trillion yuan in new debt to address economic fragility and local government debt burdens.
The stimulus package, equating to over 8% of China's GDP, aims to stabilize rather than immediately boost economic growth.
The plans include 6 trillion yuan in special sovereign bonds and 4 trillion yuan for land and property purchases to alleviate real estate pressures.
Beijing's fiscal measures could expand if Donald Trump wins the U.S. presidential election, due to anticipated economic tensions.
Analysts express concerns that the stimulus focuses more on balance sheet stabilization than on driving consumer demand or long-term growth.