China's economy is losing steam as President Xi Jinping's government cracks down on corporate debt and energy use in pursuit of more stable, sustainable growth. Photo: AP
China's economy is losing steam as President Xi Jinping's government cracks down on corporate debt and energy use in pursuit of more stable, sustainable growth. Photo: AP

China’s harsh medicine for property sector, local government debt could cause chaos, economists warn

  • Beijing’s stricter regulation of local government borrowing and real estate developers increase the risks that some of them may run out of cash, analysts say
  • Defusing financial risk was one of three economic priorities set by Chinese President Xi Jinping four years ago, which has seen scrutiny of hidden local government debts

Topic |   China property
China's economy is losing steam as President Xi Jinping's government cracks down on corporate debt and energy use in pursuit of more stable, sustainable growth. Photo: AP
China's economy is losing steam as President Xi Jinping's government cracks down on corporate debt and energy use in pursuit of more stable, sustainable growth. Photo: AP
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