Is a Debt Bubble Looming in China Amid Surging Local Government Debts?

Is a Debt Bubble Looming in China Amid Surging Local Government Debts?
Removed company signage (top L) is seen in a general view of the unoccupied Evergrande Center building in Shanghai on July 27, 2022. Hector Retamal/AFP via Getty Images
Indrajit Basu
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News Analysis

Rising local government debts and a sluggish economy fuel concerns about a debt bubble in China. Experts assert that Beijing must either initiate an extensive debt restructuring plan for local governments or curtail their role in bolstering economic growth.