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.
