China's Economic Policy Shifts

This chapter examines China's recent policy measures aimed at tackling economic challenges, focusing on local government debt and a substantial $10 trillion RMB package. It explores the shift from traditional infrastructure investment towards boosting consumption and equity markets, while also addressing potential risks stemming from the reelection of Donald Trump and tariffs on Chinese exports. The complex dynamics of government debt management, the relationship between local and central authorities, and the banking system's role in these changes are also critically analyzed.