Debt relief move key for economic stability

Supportive fiscal acts to serve as crucial pillar to sustain robust recovery amid headwinds both at home and abroad

BEIJING — Just as a single decisive move can energize a chess game, China's latest initiative to address local government debt risks marks a crucial step in revitalizing the growth prospects of the world's second-largest economy.

The move comes as China gears up to navigate economic headwinds both at home and abroad, with a supportive fiscal policy serving as a crucial pillar to sustain a steady and robust recovery.

Local governments, the linchpins of the country's fiscal outlays, were stuck with high debts and falling revenues, bringing challenges to the efforts of bolstering the economy. With the debt-relief package, a well-timed financial adjustment to ease local governments' financing strains, the country is better positioned to pursue the broader agenda of fostering economic stability and progress.