China to hash out stimulus plan with US elections in its sights

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China’s top lawmakers gathered to hash out a major stimulus package that analysts say could grow even bigger if former US president Donald Trump wins the White House this week, AFP reports.

The session kicked off with discussion of a draft revision to China’s Arbitration Law, state news agency Xinhua said.

“We are expecting more details on the proposals to be passed,” said Heron Lim of Moody’s Analytics, including “how this extra funding would be allocated to address the near-term economic issues”.

Concrete measures are expected to be announced when the meeting wraps up on Friday — in time for Beijing to take stock of results of presidential elections in the United States.

“We believe the US election results will have some impact on the size of Beijing’s stimulus package,” said Ting Lu, Nomura’s Chief China Economist, in a research note.

Both candidates in the race have pledged to get tougher on Beijing, with Trump promising tariffs of 60 per cent on all Chinese goods coming into the country.

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