Bloomberg: China’s $23 Trillion Local Debt Mess Is About to Get Worse
(Bloomberg) -- In 2021, a remote coal town in northeastern China was forced to undergo an unprecedented financial restructuring. Its struggles since are an ominous sign for President Xi Jinping as other heavily indebted municipalities look set to follow suit.
Hegang, a city with nearly a million people near the Russian border, had debt of more than double its fiscal income when it hit the headlines almost 18 months ago.
It was the first time a city administration had taken official emergency steps since the State Council unveiled rules in 2016 on how local governments, from counties to provinces, should deal with debt risks.
Hegang’s residents are now feeling the brunt of the fiscal clampdown. During a recent visit to the city, locals complained about a lack of indoor heating in freezing winter temperatures, and taxi drivers said they were being slapped with more traffic fines. Public school teachers worried about rumored job cuts, and street cleaners endured two-month delays to their salaries.
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Update: China's effort to cut $10tn of 'hidden debt' faces uphill climb (Nikkei Asia)
WNU editor: The only way that China can control its debt crisis is the same way that the West must do to control its own debt crisis.They must cut expenses and grow the economy.
Unfortunately, countries that are dependent on Western or Chinese debt are going to suffer .... China's loans pushing world’s poorest countries to brink of collapse (AP). More here .... Takeaways of AP’s report on Chinese loans pushing poor countries to brink of collapse (AP).
6 comments:
Let's worry about US 31 trillion debt first.
Literally every single day for the past 3 years the western experts have been predicting the collapse of the Chinese economy within a week/month. Clearly we know less about it than we claim to.
you are exaggerating
Lot of ghost cities
Will be useful post nuclear war
1035 I would argue more posts are on us economy and debt issues. It's a bit more rare to see bad news on China economy.. there are some, but I typically see more of bad US economic news(excluding stock markets and private mega corporations.. they're absorbing the wealth of the Middle and lower Middle class since covid lockdowns)
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