中2 trillion won will be invested to pay off local debt...What about the real economy?

[Anchor]
The Chinese version of the supplementary budget, which has been delayed since the US presidential election, has been confirmed to be worth 2,000 trillion won.

However, the impact on the recovery of the real economy remains to be seen as it is limited to addressing local debt.

This is Beijing correspondent Kang Jeong-gyu.

[Reporter]
The Standing Committee of the National People's Congress, which has the power to approve the government's fiscal expenditure at the level of China's National Assembly.

We held a meeting for five days and decided to increase the local government debt limit by 6 trillion yuan.

It intends to use 2 trillion yuan every year to pay off its "hidden debt" for three years from this year to 2026.

In addition, it has decided to issue a total of 4 trillion yuan in new local government special bonds over the next five years.

Together, the two amount is 10 trillion yuan and 2,000 trillion won in our money.

[Ran Po-an / Chinese Finance Minister: Empty resources originally used to pay off debts to promote development and improve people's livelihoods.]

Looking at the amount alone, it has increased significantly from the 4 trillion yuan invested during the global financial crisis in 2008.

Trump seems to have the possibility of resuming the trade war with the U.S. in the second term of his administration.

However, it is pointed out that China's stimulus as a percentage of total GDP is still insufficient.

In 2008, 4 trillion yuan accounted for 13% of GDP, but only 8% of this 10 trillion yuan.

Above all, it is limited to paying off local debt, making it difficult to know how effective it will be to recover the real economy.

I'm Kang Jeong-gyu from Beijing.