China’s $108 Billion Bond Sale Indicates Looming Economic Crisis: Experts

The country’s tax base has shrunk by 15 percent compared to the pre-pandemic baseline

A pedestrian walks past the People's Bank of China, also known as the China's Central Bank, in central Beijing, on Aug. 9, 2007. Teh Eng Koon/AFP via Getty Images

News Analysis

Beijing announced on Dec. 9 the issuance of 750 billion yuan (about $108 billion) worth of special sovereign bonds to roll over existing debt. Experts believe the move indicates that China faces a looming economic crisis, but it could give “local governments some breathing space” from their massive expenditures under the zero-COVID policy.