China's Bold Fiscal Move: $1.4 Trillion Debt Plan for Economic Revival

China plans to issue over 10 trillion yuan in debt to revive its economy, tackling local government debt and boosting fiscal stimulus. The approval is linked to the U.S. election outcome, with increased measures if Trump wins. The package includes special bonds to enhance infrastructure and address property issues.

China is poised to approve a massive fiscal package exceeding 10 trillion yuan ($1.4 trillion) to bolster its faltering economy. This strategic move could gain momentum if Donald Trump secures the U.S. presidency, according to insiders.

The Standing Committee of the National People's Congress is set to authorize the unprecedented financial strategy during a November meeting. This package, accounting for over 8% of China's GDP, underscores the government's urgency in stabilizing a property sector in crisis and addressing local government debt.

The leadership may expand fiscal measures further, contingent on the U.S. election result. Additional plans involve major investments in infrastructure and government bonds to support long-term economic growth, highlighting China's proactive fiscal intervention.

(With inputs from agencies.)