A cockle farmer trudges through a muddy field near the Meizhou Bay bridge, which is under construction as part of the Fuzhou-Xiamen high-speed railway project, in Putain, Fujian province, China, on February 8. Local governments have poured funds raised by the floating of bonds into infrastructure projects. Photo: Bloomberg A cockle farmer trudges through a muddy field near the Meizhou Bay bridge, which is under construction as part of the Fuzhou-Xiamen high-speed railway project, in Putain, Fujian province, China, on February 8. Local governments have poured funds raised by the floating of bonds into infrastructure projects. Photo: Bloomberg
A cockle farmer trudges through a muddy field near the Meizhou Bay bridge, which is under construction as part of the Fuzhou-Xiamen high-speed railway project, in Putain, Fujian province, China, on February 8. Local governments have poured funds raised by the floating of bonds into infrastructure projects. Photo: Bloomberg
Yukon Huang
Opinion

Opinion

The View by Yukon Huang and Joshua Levy

China’s local government debt may not cause a financial crisis, but it poses a huge fiscal challenge

  • China must boost its tax rates and realign tax and expenditure responsibilities so local governments become less dependent on revenue allocations from Beijing and land sales to finance their expenditure

A cockle farmer trudges through a muddy field near the Meizhou Bay bridge, which is under construction as part of the Fuzhou-Xiamen high-speed railway project, in Putain, Fujian province, China, on February 8. Local governments have poured funds raised by the floating of bonds into infrastructure projects. Photo: Bloomberg A cockle farmer trudges through a muddy field near the Meizhou Bay bridge, which is under construction as part of the Fuzhou-Xiamen high-speed railway project, in Putain, Fujian province, China, on February 8. Local governments have poured funds raised by the floating of bonds into infrastructure projects. Photo: Bloomberg
A cockle farmer trudges through a muddy field near the Meizhou Bay bridge, which is under construction as part of the Fuzhou-Xiamen high-speed railway project, in Putain, Fujian province, China, on February 8. Local governments have poured funds raised by the floating of bonds into infrastructure projects. Photo: Bloomberg
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Yukon Huang

Yukon Huang

Yukon Huang is a senior fellow at the Carnegie Endowment and author of "Cracking the China Conundrum – Why Conventional Economic Wisdom Is Wrong".

Joshua Levy

Joshua Levy

Joshua Levy is currently a James C. Gaither Junior Fellow with the Carnegie Endowment of International Peace’s Asia Programme. He is a graduate of Georgetown University's Edmund A. Walsh School of Foreign Service where he studied International Political Economy and Mathematics. He currently resides in Washington, D.C.