China to the rescue

NEW YORK (CNNMoney.com) -- Investors have largely panned the stimulus package that President Obama signed into law last month. But stimulus in China? Now that's a different story.

Stocks around the world rallied Wednesday morning, and some attributed the pop to reports that the Chinese government was planning to boost its spending on infrastructure and manufacturing.

The Shanghai Composite Index surged more than 6% Wednesday. And shares of several Chinese-based companies that trade in the United States followed suit: the stocks of wireless telecom provider China Mobile (CHL) and oil giant CNOOC (CEO) each gained about 7% while Internet search leader Baidu (BIDU) shot up nearly 12%.

But increased stimulus from Beijing may do more than just help companies based in China. A healthy Chinese economy could go a long way toward lifting the sagging U.S. economy and others around the world as well.