China plans over $1.4 trillion in new debt to boost economy before US election

China is planning to approve over 10 trillion yuan ($1.4 trillion) in new debt to stimulate its economy, with a key decision expected during a legislative meeting from November 4-8. This package includes 6 trillion yuan in special sovereign bonds. The proposed debt aims to help local governments manage off-the-books debt risks amid a struggling economy. This move marks a shift towards increased fiscal stimulus, although it is not as extensive as the 2008 financial crisis response. The timing of the meeting coincides with the U.S. presidential election, allowing China to adjust its fiscal plans based on the outcome. Additional initiatives may include special-purpose bonds for land purchases and support for state banks.