China Faces $3 Trillion Local Debt Crisis, Economist Warns

Reported about 14 hours ago

Top economist David Li Daokui has highlighted the need for China to address the local governments' staggering debt, estimating that the central government should take on approximately 20 trillion yuan ($2.8 trillion) to support consumer spending and bolster the economy. Li argues that current debt relief measures are insufficient, as local authorities grapple with significant arrears and economic pressures exacerbated by the pandemic and trade tensions. To stimulate domestic consumption, he recommends increased government borrowing and incentives for consumer spending.

Source: YAHOO

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