China is currently facing economic challenges such as debt, deflation, and unfavorable demographics.

The upcoming U.S. presidential election, particularly with Donald Trump threatening high tariffs on Chinese exports if he is reelected, adds further pressure.

Investors were expecting a strong fiscal stimulus package to be announced after a legislative meeting on November 8th. However, the Chinese government has chosen a cautious approach and unveiled a plan that focuses on addressing debt but lacks substantial measures to combat deflation.

This restrained response from China's leaders raises questions about the effectiveness of their economic strategy given the growing external pressures and internal challenges.