China Eyes $1.4 Trillion Stimulus Amid Concerns Over Trump's Return


(MENAFN- Khaama Press)
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Two sources told Reuters that China is planning to approve a financial package worth over $1.4 trillion next week to revive its fragile economy.

The sources indicated that if Donald trump wins the U.S. presidential election, Beijing might approve an even larger financial package, as his return to the White House could increase economic pressures on China.

Trump has promised, if re-elected, to impose a 60% tariff on imports from China and a 10-20% tariff on imports from Europe. Sources stated that his victory could significantly impact the German economy, a major trading partner.

China's National People's Congress, the country's highest legislative body, is expected to approve the financial package, which includes six trillion yuan, funded partially through special government bonds during their session from November 4 to 8.

The entire planned amount, over 8% of the world's second-largest economy's GDP, aims to support local governments struggling with long-standing property crises and high debts. Analysts have anticipated this 10 trillion yuan ($1.4 trillion) stimulus package in recent weeks.

Amid ongoing geopolitical tensions, China's proactive move with this massive stimulus package signals its intent to strengthen its economic resilience. The country aims to deter future challenges and reinforce its position in the global economy.

China's recent actions can be seen as part of a broader strategy to stabilize its internal economy while preparing for rising tensions in the region, including issues related to Taiwan, the Middle East, and ongoing conflicts.

In the context of Ukraine, China's support of Russia, both politically and economically, has further highlighted its strategic interests and alliances. These moves could shape future geopolitical dynamics and global economic policies.

China's proactive approach in addressing internal and external challenges underscores its growing influence in shaping the regional and global landscape. How other nations respond to these actions will likely impact the balance of power and diplomatic relations in the coming years.

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Khaama Press

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