New stimulus package in China

The slowdown in economic activity in China has prompted the government to take action. The State Council, which is China’s executive body, has announced a new $146 billion package. Chinese authorities have been announcing a succession of stimulus packages to catch up with the receding growth target. The State Council, which is China’s executive body, announced a 19-item policy package worth 1 trillion yuan ($146 billion) on Wednesday. The package will provide state banks with 300 billion yuan to invest in infrastructure projects. Local authorities will also be given a special bond facility worth 500 billion yuan. Chinese Premier Li Keqiang has said he is ready to use all the tools at his disposal. However, economists at Goldman Sachs say the latest package will not accelerate growth, which is currently at 3 percent.