China announces 6 trillion yuan financial package to boost economy

China has announced a 6 trillion yuan (€777.1bn) financial package to help local governments manage their debt over the next three years. This plan aims to stimulate economic growth amid rising trade tensions with the U.S. under a Trump presidency. The government will allocate 2 trillion yuan annually from 2024 to 2026 to address local debts, which have increased due to high spending and low tax revenues during the pandemic. The ceiling for issuing special bonds will also rise to 35.52 trillion yuan (€4.61bn). Recent economic indicators show improvement, with car sales rebounding and exports rising 12.7% last month. However, the Communist Party remains focused on long-term structural changes, despite the need for immediate economic recovery measures.