China’s State Council is looking to tackle the growing implicit debt piles owned by local governments, while reducing local governments’ decades-old reliance on debt-driven growth. Photo: Xinhua
China debt: State Council says local governments must ‘tighten their belts’ and cut debt to reduce financial risks
- Announcement doubles down on Beijing’s commitment to move away from decades-old reliance on debt-driven growth
- Analysts expect China’s leadership to focus on tackling growing implicit debt piles, particularly at local government levels
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China’s State Council is looking to tackle the growing implicit debt piles owned by local governments, while reducing local governments’ decades-old reliance on debt-driven growth. Photo: Xinhua
