An earthquake occurred in the province of Sichuan, China at 14:28:01 China Standard Time on May 12, 2008. Measuring at 8.0 Ms, the earthquake's epicenter was located 80 kilometres (50 mi) west-northwest of Chengdu, the provincial capital, with a focal depth of 19 km (12 mi). The earthquake ruptured the fault for over 240 km (150 mi), with surface displacements of several meters. The earthquake was also felt as far away as Beijing and Shanghai—1,500 and 1,700 km away, respectively—where office buildings swayed with the tremor, as well as Bangkok, Thailand and Hanoi, Vietnam. Strong aftershocks, some exceeding 6 Ms, continued to hit the area up to several months after the main shock, causing further casualties and damage. The earthquake also caused the largest number of geohazards ever recorded, including about 200,000 landslides and more than 800 quake lakes distributed over an area of 110,000 km2 (42,000 sq mi).

The 2008–09 Chinese economic stimulus plan was a RMB¥ 4 trillion stimulus package aiming to minimize the impact of the financial crisis of 2007–2008 on the Chinese economy. It was announced by the State Council of the People's Republic of China on 9 November 2008. The economic stimulus plan was seen as a success: While China's economic growth fell to almost 6% by the end of 2008, it had recovered to over 10% by in mid-2009. Critics of China's stimulus package have blamed it for causing a surge in Chinese debt since 2009, particularly among local governments and state-owned enterprises. The World Bank subsequently went on to recommend similar public works spending campaigns to western governments experiencing the effects of the financial crisis, but the US and EU instead decided to pursue long-term policies of quantitative easing.