In a major financial move Chinaʼs govt announced a one-point-four trillion dollar aid-package to help its debt-heavy regions (which includes many cities and towns that are short on cash). This super-sized money injection comes as Xi Jinpingʼs administration deals with slow-moving economy
The fresh cash-boost marks the second time in about two months that Beijing has stepped-in to prop-up local finances; however economic experts think this might not fix deep-rooted money troubles. The timing is extra-important because of new trade worries with USA: after Donald Trump won his party nomination chances of trade problems got higher
The double-sided challenge – fixing internal debt issues and managing outside pressures – shows how complex Chinaʼs current situation is. Local govtʼs have been dealing with money shortages which affects their day-to-day work and long-term plans. This mega-sized support package aims to give them room to breath; yet some financial analysts say its just a band-aid fix for bigger issues that need more work