China announces $1.40 trillion debt package to support local governments

China has announced a 10 trillion yuan ($1.40 trillion) debt package to help local governments manage their finances and stabilize economic growth. This approach differs from previous strategies that focused on direct economic stimulus. The new measures include raising local government debt quotas and allowing municipalities to address "hidden debts." However, analysts note that these actions may not significantly boost economic activity or address immediate financial pressures. China's economic outlook is complicated by the potential for increased tariffs from the re-elected U.S. President Donald Trump, which could further impact trade and growth. The government plans to support manufacturing and consumer spending but has not provided specific details on these initiatives.