In a significant move to address the economic challenges facing local governments, China has unveiled a $1.4 trillion debt relief package aimed at tackling the hidden debts accumulated by these entities. While the plan does not include direct stimulus measures, it is designed to shore up the economy and alleviate concerns over local government finances. The announcement comes as Chinese stocks react cautiously, and investors express disappointment with the nature of the stimulus, which falls short of expectations. Analysts suggest that this could be a strategic approach, preserving further stimulus options for future economic pressures as the country navigates complex global trade dynamics.