China

Huge Debts Limiting Services in Some Chinese Cities – CNN

 

After three years of strict pandemic controls and a prolonged real estate crisis, local government bodies in China accumulated an estimated 123 trillion yuan ($18 trillion) of debt last year, according to a report by CNN, which said the problem is so bad “that some cities are now unable to provide basic services” and are at risk of default.

Analysts said this figure includes $10 trillion of “hidden debt” owed by local government financing platforms backed by cities or provinces, which were forced to slash wages and cut transport services or fuel subsidies in the middle of a harsh winter, the report said. But with local governments having “exhausted their budgets” after spending huge sums enforcing Covid lockdowns, mass testing and manning quarantine centres, it is reportedly not yet known if Beijing will bail them out, which led to a warning by Rhodium Group last week of a “significant risk of financial contagion” if small city and rural banks default because of their close ties to local governments.

Read the full report: CNN.

 

 

ALSO SEE:

 

China Debt Ratio Three Times GDP in Record High – Nikkei

 

China Banks Told to Issue Offshore Loans to Pay Developers’ Debt

 

China Banks Promise Ailing Developers $162 Billion in Credit

 

China Warns of Export Curb on Polysilicon, Solar Wafers – PV Mag

 

 

 

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.

Recent Posts

Chinese Hackers Poised to Strike at US Infrastructure: FBI Director

The US law enforcement chief said a Chinese hacking campaign known as Volt Typhoon has…

2 mins ago

Mayors of Big Global Cities Calling for Urban Climate Finance

Officials from some of the world's biggest cities are in Washington to lobby for better…

15 hours ago

Trade War Heating Up: China Hits Back After Biden Boosts Tariffs

China announces "anti-dumping penalties" on imports of a US chemical and orders Apple to cut…

19 hours ago

Wall St ‘Steered Billions Into Blacklisted China Firms’ – Nikkei

Chinese companies invested in included the Aviation Industry Corp of China, a defence conglomerate that…

22 hours ago

China Orders Apple to Cut WhatsApp, Threads from App Store

US tech giant said Beijing ordered it to cut the messaging apps because of national…

22 hours ago

Nikkei Slumps, Hang Seng Dips as Middle East Fears Grip

Israel’s missile attack on Iran sent investors heading for safe-haven currencies, gold and crude oil

23 hours ago