It's the Economy, Ben Dan!

Many China watchers are feeling at least a small sense of relief in an otherwise dreary world economy following China's announcement last night that it would implement at $586 billion domestic stimulus package over the next two years.

While some have compared China's historic policy to the FDR's New Deal in the 1930s, others have criticized the policy, saying that its aims are unclear, and that many of the plan's items had had already been in the works prior to the announcement.

China's State Council announced the plan on Sunday, a day after Chinese President Hu Jintao spoke with President-elect Barack Obama about the global financial crisis. Hu will also be joining other world leaders in Washington D.C. this weekend to discuss ways to prevent an extended world recession at the Group of 20 largest economies.

The two-year plan, as written, constitutes about 7 percent of China's gross domestic product per year. Compare that to the United State's $168 billion stimulus package, passed earlier this year, which was about 1 percent of the U.S. GDP. Meanwhile, the recent $700 billion bailout package approved by the U.S. Congress, focuses mainly on strengthening banks, not directly offering support to projects in the United States.

China has experienced significant effects from the global financial crisis in recent months. There have been several protests over factory closures and the rising unemployment rate in souther China, as fewer U.S. companies seek Chinese exports. Domestic fears flamed even further after an email rumor circulated that included a list of companies across China that would supposedly issue issue massive layoffs.

Asian markets saw a boost after news of the Chinese package, but only time will tell if the plan will significantly stem the global economic bleeding. Finally, If you can't guess what ben dan means from the title of this blog, you may just be one.