Beijing has announced a US$1.4 trillion package aimed at relieving the "hidden debt" of China's local governments, brought about by infrastructure investments made through risky government financing platforms.
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00:00China has announced a 1.4 trillion U.S. dollar debt relief package for local governments.
00:06The package is aimed at stabilizing China's economy, which has been slowing amid low domestic
00:11demand.
00:12It will go toward helping local governments replace so-called hidden debts.
00:16Those are a result of investments in infrastructure projects made through risky government financing
00:22platforms.
00:23The International Monetary Fund estimated China had more than 20 trillion U.S. dollars
00:27in central and local government debt in 2023, or about 117 percent of its GDP.