China's Stimulus Package

China's Rescue Plan

China's massive effort to shore up its domestic economy may also do the world a favor. ``Very few countries are going to match this stimulus -- it's huge,'' said Nicholas Lardy, senior fellow at the Peterson Institute for International Economics in Washington. ``It's a very strong step and puts them in a commanding position in setting an example to other economies.'' The $586 billion stimulus package, announced on Nov. 9, pushed the price of copper and silver higher yesterday and sent stocks soaring from Hong Kong to Frankfurt. The reaction was a sign of global dependence on the $3.3 trillion Chinese economy, which accounted for about a quarter of world growth last year and consumed 41 percent of coal production. The global financial crisis and resulting collapse in demand has led to a contraction in Chinese manufacturing and a slump in exports. In addition to propping up domestic industries, the measures may give the world a cushion as the U.S., European and Japanese economies shrink.