China approves $1.4 trillion debt package in latest measure to boost flagging economy

China has approved a 10 trillion yuan ($1.4 trillion) plan to bolster its ailing economy by allowing local governments to swap out their hidden debt, unveiling additional stimulus measures to counter a potentially volatile growth path marked by the impending return of Donald Trump to the White House.

Finance Minster Lan Fo’an told a Friday press conference the six trillion yuan ($838 billion) debt limit would be made available over three years to help regional governments replace their so-called “hidden debt.” This kind of debt is normally owed by risky local government financing platforms that are backed by cities or provinces.

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