Beijing has pledged to speed up infrastructure spending to steady the economy, but it is also wary of growing debt. Photo: EPA-EFE
China debt: is Beijing using a ‘shadow stimulus’ to shore up flagging economic growth?
- Analysts say Beijing is turning to local government borrowing and regional banks to shore up growth, rather than conventional fiscal and monetary policy
- But Beijing’s zero-Covid target – which relies on lockdowns, mass testing and quarantines – is putting enormous pressure on regional finances
Beijing has pledged to speed up infrastructure spending to steady the economy, but it is also wary of growing debt. Photo: EPA-EFE
