Some of this money has gone into building bridges, roads and other infrastructure. But many have come to less productive parts of the economy, such as large, inefficient state-owned enterprises. The most dynamic private sector has not benefited so much.
At the end of last year, Beijing stepped up its efforts to curb high levels of debt, which is one of the main reasons why the economy is losing momentum.
Some analysts are skeptical about the Chinese government's commitment to clean up its financial system, especially as the slowdown is deepening and the trade war is intensifying.
Many provincial governments and state-owned companies will try to stay above water without regular cheap credit injections, according to Kevin Lai, an economist at Daiwa Capital Markets.
Reducing their credit lines "would have a very negative impact, such as social unrest, redundancies and bankruptcies," Laj said. This is a scenario that wants to avoid Beijing.
Fall of currency
The weaker yuan has boosted China's vast export industry as it makes Chinese products cheaper on world markets. But the fall in the yuan has caused headaches in the past.
Between sharp cuts in 2015 and 2016, huge sums of money were flooded by China as investors bet that the yuan will continue to decline. The crisis forced Beijing to spend hundreds of billions of dollars to support its currency.
A sharp fall in the yuan could become a vicious circle, according to Manu Bhaskaran, the founder of the Centennial Asia research firm based in Singapore.
"There could be a huge outflow of capital and it could feed itself," he said.
Beijing seems to have started to enter its massive foreign currency war in recent months to slow down yuan cuts, according to research firm Capital Economics.
Real estate bubble
Another threat lies in the country's excessive property market.
Prices have more than doubled in the last decade, according to research firm Gavekal, which is affected by low interest rates and lack of housing in large cities.
But the real estate market now "seems to be showing some cracks," said Aidan Yao, a senior emerging market economist at AXA Investment Managers. He pointed out some cases of large real estate developers who are prone to falling prices in the face of falling demand.
"It's only a matter of time before the market gets cool," Yao added.
The real estate industry is one of the few bright spots for China's economy this year, but it is turning into weight if it collapses, according to analysts at Fitch Solutions.
"China's problems are chronic, not acute," said Derek Scissors, a China expert at the American Enterprise Institute, a think tank based in Washington.
But these moves come too late or do not go far enough, causing serious worries about China's long-term economic future, according to the scissors.
"Old, indebted economies do not grow," he said