China is facing economic struggles with a job crisis, nervous businesses, and local governments burdened with debt. Despite Beijing's efforts to firefight these issues, the economy remains on shaky ground.

China's Economic Struggles

In response to the economic crisis, Beijing plans to issue new bonds worth 1 trillion Yuan or about $137 billion. This is an unusual move as China rarely revises its budget.

Beijing's New Plan

 Xi Jinping is offering more debt to local governments that already owe more than $7 trillion. While this will relieve some burden, it won't solve their problem.

More Debt - A Solution?

Xi Jinping recently sacked his Finance Minister Liu Kun and named Lan Fo’an as his replacement. Lan now has a specific mandate to handle local government debt and defuse this crisis.

Cabinet Reshuffle