ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Economy

China prepares $370bn package to fire up cooling economy

Debt concerns risk discouraging government from going all-out

Chinese workers labor at the construction site of the railway arch bridge with world's longest span of 490 meters across the Nujiang River on the 220-km-long Dali-Ruili railway in Baoshan city, southwest China's Yunnan province. (Photo by Imaginechina via AP Images)

BEIJING -- The Chinese government is ramping up stimulus plans to keep the economy moving along amid mounting pressure, planning more than 2.5 trillion yuan ($370 billion) in tax cuts and infrastructure spending while also encouraging wary banks to extend more credit.

The package, which has been taking shape since last fall, amounts to around 3% of gross domestic product. The 4 trillion yuan that the government pumped into the economy after the 2008 global financial crisis equated to 13% of GDP, suggesting that Beijing still has plenty of firepower at its disposal.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more