How can China’s $1.4 trillion debt package ease local debt risk?

China has announced a new debt relief package - a total of 10 trillion yuan ($1.4 trillion dollars) – to ease the financial burden on local governments. The decision raises the ceiling on local government debt by 6 trillion yuan (about $840 billion), and local governments will have access to a separate 4 trillion yuan (about $560 billion) quota in the form of special local bonds over five years. How does the debt relief package work? What are the long-term implications for China’s fiscal health and economic growth? Host Xu Yawen joins Dr. Zhou Mi, Senior Research Fellow with Chinese Academy of International Trade and Economic Cooperation; Dr. David Blair, Vice-president and senior economist at the Center for China and Globalization; and Prof. Yao Shujie, Chueng Kong Professor of Economics, Chongqing University.