China's Economic Stimulus and Demographic Crisis

China has announced a new stimulus program, reminiscent of Japan's economic struggles in the 1990s, but faces a more severe demographic decline. With a rapidly aging population and fewer people under 50, consumer spending is declining, leaving industrial development as the only potential solution. The anticipated debt issuance could total in the hundreds of billions, but it raises the question of how to effectively allocate these funds. Three proposals have emerged: completing unfinished properties, bailing out local government debt, and increasing industrial capacity, but none adequately address the underlying demographic issues.