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’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

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’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
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