China unveils £1.1 trillion fiscal package to support economy amid trade tensions

China has announced a £1.1 trillion ($1.4 trillion) fiscal package to support local governments and boost its struggling economy. This plan allows local authorities to issue new bonds to manage rising debt over the next three to five years. The package aims to restructure "hidden" debts and relieve local governments burdened by past infrastructure investments. Officials will authorize ¥6 trillion (£660 billion) in new bonds and reallocate an additional ¥4 trillion (£440 billion) from existing plans. Despite the scale of the package, some investors expressed disappointment over the lack of measures to stimulate consumer spending. The renminbi fell to its lowest level in a year amid concerns about potential trade tensions with the US under Donald Trump.