China’s Local Governments Grow More Dependent on Beijing as Revenue Shortfalls Deepen

Official data show even China’s wealthiest provinces failed to cover spending in early 2026 as land-sale revenue continued to decline.

A man walks through a partially operating Evergrande commercial complex (L), next to an Evergrande residential compound (R) in Beijing on Jan. 30, 2024. Pedro Pardo/AFP via Getty Images

China’s local governments are becoming increasingly dependent on financial support from Beijing as tax revenues and land-sale income fail to keep pace with spending obligations, according to the regime’s official data.

Budget figures released by finance departments across mainland China show that 28 provincial-level regions—including Beijing, Shanghai, Guangdong, and other major economic centers—were unable to generate enough revenue through their general public budgets to cover expenditures during the first quarter of 2026.