China announces 10 trillion yuan support package for local governments facing debt crisis

China has announced a 10 trillion yuan support package for local governments facing debt issues. This includes raising debt ceilings by 6 trillion yuan over three years to address hidden debts, which are estimated at 14.3 trillion yuan. Critics argue that the measures do not adequately resolve the local government debt crisis and label the package an "accounting exercise." They suggest the actual hidden debt could be much higher, possibly around 50 trillion yuan. The announcement follows a meeting of the National People’s Congress, where expectations were high for stronger economic stimulus. China's GDP growth fell to 4.6% in the third quarter of 2024, below the 5% target.