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’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 economy
Economy /  China Economy

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

Topic |   China economy
Frank Tang
Frank Tang in Beijing

Updated: 7:30pm, 16 Mar, 2021

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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 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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