China plans major stimulus package as Trump returns to White House
China plans to announce a large fiscal stimulus package on Friday, coinciding with the conclusion of the National People's Congress session. This move follows Donald Trump's election as U.S. president, prompting China to reassess its economic strategies. Finance Minister Lan Foan has suggested raising the debt ceiling for local governments to manage hidden debts. The package may include special bonds for banks and local governments to purchase unsold properties, with estimates ranging from 6 trillion to over 10 trillion yuan. This stimulus comes amid concerns over potential U.S. trade policies under Trump, who proposed significant tariffs on Chinese imports. The announcement aims to bolster investor confidence in Chinese stocks, which have recently shown signs of recovery.