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China’s Cash-Strapped Wuhan Calling in Its Debts – CNN

Officials in Wuhan have appealed for 259 local companies and entities to pay debts of some $14 million – showing the financial crisis that many local governments in China face

Officials in Wuhan hare appealed for local companies to repay their debts.
Officials in Wuhan hare appealed for local companies to repay their debts. Xinhua file photo.


Officials in Wuhan – where the Covid pandemic started in late 2019, and one of the biggest cities in central China – have called for 259 local companies to pay debts of over 100 million yuan ($14 million) combined, according to a report by CNN, which cited the official Changjiang Daily newspaper and said this “extremely rare move” highlights the dire financial situation of many of local governments across the country.

China’s outstanding government debts were estimated to have topped 123 trillion yuan ($18 trillion) in 2022 and more than half of that is said to be “hidden debt” – nearly $10 trillion – held by financing platforms run by local governments, the report said, adding that municipal authorities’ coffers have been hit hard since the crackdown on huge debts in the real estate sector, which has reduced the tax revenue from land sales that was previously a strong source of income for provincial governments.

The read the full report: CNN.




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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


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