Matt WillemsenHow China’s hidden debt risk ‘comes from its system’, and why local governments are beholden to Beijing
China’s zero-Covid policies and post-pandemic push for self-sufficiency have strained finances at local levels, pushing debt sky high this year, with little help from the central government
Some say Beijing is reluctant to change China’s fiscal structure because it gives leaders greater financial control over the provinces
https://www.scmp.com/economy/china-economy/article/3229284/how-chinas-hidden-debt-risk-comes-its-system-and-why-local-governments-are-beholden-beijing?utm_source=rss_feed #china #economy #DebtRisk #LocalGovernments
China’s zero-Covid policies and post-pandemic push for self-sufficiency have strained finances at local levels, pushing debt sky high this year, with little help from the central government
Some say Beijing is reluctant to change China’s fiscal structure because it gives leaders greater financial control over the provinces
https://www.scmp.com/economy/china-economy/article/3229284/how-chinas-hidden-debt-risk-comes-its-system-and-why-local-governments-are-beholden-beijing?utm_source=rss_feed #china #economy #DebtRisk #LocalGovernments
As China’s debt risks mount, the spectre of looming local crises rears its head
China’s zero-Covid policies and its post-pandemic recovery efforts have strained finances at local levels, pushing debt to an all-time high this year – twice what it was in 2017 – with little help from Beijing.
Chong Yidong