China drops massive money package to fix local money problems
Chinese government launches huge financial aid program to support struggling cities and towns. The move comes as Beijing tries to handle both internal economic issues and possible trade problems with USA
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
