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China debt

China debt
The latest news and features on China's debt, both local and national.
Chinese 100 yuan banknotes. Photo: Reuters
Two Sessions 2026

China’s central-local fiscal flows should be parent-child relationship: adviser

‘Central finance is like a father … while local governments are like children,’ tax policy expert says, affirming support for revenue-sharing reforms.

Two Sessions 2026

‘Two sessions’ 2026

Two Sessions 2026

Why China is moving away from tax cuts and pushing for reform

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Two Sessions 2026

China pledges ‘iron discipline’ to tackle debt as US borrowing surges

Global debt reached a record high in 2025 and rose in the world’s two largest economies.

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Premier Li Qiang delivering the government work report on Thursday, in the Great Hall of the People in Beijing. Photo: Reuters
Two Sessions 2026

China’s pivot from GDP obsession sparks cadre confusion, tests local governance

Governors and mayors must reconcile Beijing’s people-centric mandates with traditional growth targets, navigating vague appraisal changes and performance concepts.

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Two Sessions 2026

China’s leaders outline economic focus ahead of ‘two sessions’ – what to expect

Top officials met ahead of Beijing’s annual legislative sessions, when this year’s growth target and five-year plan will be unveiled.

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Banking & finance

‘Stability risk’: US faces rising concern as global debt soars to record high

Global debt accumulation ‘accelerated sharply’ in 2025, driven by surging investment in the US, China and Europe, report finds.

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Massive investment in artificial intelligence data centres has contributed to a rapid build-up in global debt levels over the past year, according to a new report. Photo: Shutterstock
Two Sessions 2026

After years of ‘at-all-costs’ growth, China wants cadres to ditch GDP obsession

Five-month campaign seen prioritising social welfare and long-term sustainability over economic expansion, with debt, fraud and vanity projects in crosshairs.

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China's economic recovery

As Chinese provinces slash revenue outlook, analysts warn of debt control

Local governments seen curbing infrastructure spending as Beijing’s fiscal discipline pushes regions to prioritise social services and tech over large projects.

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China consumption

China’s consumer spending push faces major challenge – debt-averse households

Beijing has renewed its focus on boosting domestic demand in recent months, but households are cutting debt at fastest pace in years.

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National retail sales grew by 3.7 per cent in 2025, below the 5 per cent GDP growth rate. Beijing has made boosting consumer spending a top policy priority in recent years, though results have been mixed. Photo: Xinhua
China's economic recovery

China tightens rail approvals as Xi warns on waste and ‘operational’ trouble

Intercity lines face stricter break-even rules, as the central government cracks down on ‘back-door’ metro projects and looks to curb redundant infrastructure spending.

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Workers lay track at a construction site in China’s Jiangsu province. Photo: Getty Images
US-China relations

China dumps more US debt, buys other assets as Trump targets Powell

Beijing’s Treasury holdings hit a September 2008 low, and analysts point to fears over Fed independence and debt sustainability, while gold’s appeal rises.

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Banking & finance

China signals flexible use of monetary tools in 2026 to support 5-year plan

Boosting domestic demand, addressing debt risks and promoting yuan’s international use also priorities for coming year.

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Infrastructure

No more empty trains: China tightens rules on subway expansions to curb debt

Rich hubs, including Ningbo and Suzhou, are hitting regulatory roadblocks as the central government prioritises fiscal discipline over infrastructure-led growth.

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Passengers ride a fully automated metro train in Ningbo, Zhejiang province. Photo: Getty Images
Banking & finance

China to hide bad debt records for pandemic-hit borrowers who repay small loans

New policy by the People’s Bank of China applies to one-off debts up to 10,000 yuan incurred since 2020, aiming to help people rebuild credit.

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The People’s Bank of China has unveiled a credit-rehabilitation policy to help individuals who defaulted on small loans rebuild their financial standing. Photo: Reuters
Mainland China

China orders local governments to settle company bills by end of year

Top planning official says repaying debts is ‘moral bottom line’ and biggest step for improving China’s business environment.

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China GDP

IMF raises China growth forecast to 5% for 2025, citing resilience

The assessment is up from October’s forecast, with the fund citing government stimulus and lower tariffs as drivers.

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China GDP

China’s economic focus in 2026: what to expect as leaders prep for major meeting

Growth of ‘around 5 per cent’ may be revised to between 4.5 and 5 per cent, analysts say, as leadership gears up for tone-setting conference.

Chinese leaders will hold the central economic work conference in December, a closed-door meeting to discuss the top policy goals for 2026.
Banking & finance

China’s risky shadow banks back in spotlight after debt crackdown

Entities owned by local governments are borrowing billions from trust companies and leasing firms at rates of 8 per cent or higher, sources say.

Banking & finance

China’s finance chief calls for fiscal firepower as Beijing weighs 2026 goals

This month’s central economic work conference will set the tone, while top finance official signals more assertive fiscal support.

Bonds

Weak growth outlook fuels China’s bond market recovery, analysts say

Concerns about inflated valuations of technology stocks are also driving investors towards bonds.

The People’s Bank of China building in Beijing. Photo: China News Service/VCG via Getty Images
China economy

Opinion | An obscure new department heralds a shift in China’s debt cycle

In addition to regulating local government debt, the department will guide the nation away from a cycle driven by land as collateral.

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People at work on the construction site of a residential housing complex in Huaian, in eastern China’s Jiangsu province on July 1. China’s household leverage growth is stalling. Photo: AFP
China's economic recovery

China tightens tax scrutiny on citizens’ overseas income amid fiscal pressures

As local authorities use big data to identify violators, analyst says better enforcement could ease financial strain.

China's economic recovery

Tax reform in China’s 5-year plan aims to protect budgets without crushing firms

Officials propose boosting direct and local levies, curbing tax breaks and tapping new sectors to shore up local revenues and fund social spending.

Banking & finance

China sets up new department to spearhead government debt clean-up drive

The move comes as Beijing steps up efforts to clear up masses of ‘hidden debt’ accumulated by local governments.

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Local governments across China accumulated large volumes of hidden debt in the 2010s as they raised funds for large-scale construction projects, such as this tourist attraction in Dushan county, Guizhou province. Photo: Luna Sun
China's economic recovery

‘Unforgivable’: Chinese county still living in shadow of wild spending binge

In the 2010s, Dushan splashed billions on high-rises and a fake Big Ben. Today, the buildings are mostly empty – but the debts remain.

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Illustration: Henry Wong
Ray Dalio

In China, Ray Dalio discusses global debt issues as Beijing seeks his counsel

With local-level debt still posing risks in China, while US borrowing accelerates, Beijing turns to the Wall Street veteran for guidance while navigating precarious financial waters.

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China stock market

Chinese bond rout continues as global holdings dip to lowest level in 5 years

Flight to equities increases pressure on China’s debt market as holdings by foreign institutions fall for a third straight month.

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