Beijing vowed this month to accelerate fiscal spending, which includes allowing for the construction of new infrastructure, but local government debt still poses an economic challenge. Photo: Xinhua
Beijing vowed this month to accelerate fiscal spending, which includes allowing for the construction of new infrastructure, but local government debt still poses an economic challenge. Photo: Xinhua

China’s infrastructure plans aim to shore up economy, but experts say Beijing may first need to ease up on local debt

  • As China’s fiscal policy turns from contraction to expansion next year, infrastructure investment is expected to accelerate, but the risk of a rapid increase in debt remains
  • Financially strapped local governments have been reluctant to take advantage of special-purpose bonds, as these primarily go to infrastructure spending

Topic |   China's economic recovery
Beijing vowed this month to accelerate fiscal spending, which includes allowing for the construction of new infrastructure, but local government debt still poses an economic challenge. Photo: Xinhua
Beijing vowed this month to accelerate fiscal spending, which includes allowing for the construction of new infrastructure, but local government debt still poses an economic challenge. Photo: Xinhua
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