Stashed away around China is a pile of cash larger than the annual economic output of Norway.
Governments at all levels across the nation have a total of 2.8 trillion yuan ($410 billion) saved, according to researchers at Industrial Bank Co., and that money could be used to boost economic growth in the event of further escalation of the trade war.
The money is from unspent revenues, profits from land sales, levies or profit from state firms, expected bond revenues and other sources. The hoard exceeds the targeted national budget deficit of 2.38 trillion yuan for this year.
While those funds are unlikely to be spent all at once, the sheer size of it shows that there is a cushion available to shield the economy from shocks due to the trade war with the U.S.
In addition, extra funding could come from public-private partnerships or local governments, according to the note.
