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China Reveals $586 Billion Economic Package

China revealed a massive economic stimulus package on Sunday, a move that could help the global economy as well, reported the New York Times.

The plan would allow $586 billion to be spent by 2010 on bolstering infrastructure, social welfare programs and transportation projects and would include tax cuts and a loosening of credit, reported the Los Angeles Times.

Introduced by the Chinese State Council, the package would be the largest in China's history, accounting for 7 percent of its gross domestic product over the next two years.

China's economy had been growing by double digits, but with a weakening real estate market and declining exports, China has seen that number shrink.

Unlike the United States government, however, China operates with $2 trillion in foreign reserves and a significant surplus, allowing them to enact aggressive plans to stimulate their economy before things spiral out of control.

"Despite the weakening economy and slowing tax revenue in recent months," said Jing Ulrich, managing director of China equities at JP Morgan in Hong Kong, "the government has every political incentive to boost spending in priority programs."