Mass Debt Defaults by China’s Local Governments Are Inevitable: Experts

Mass Debt Defaults by China’s Local Governments Are Inevitable: Experts
The city skyline in Shanghai, China, on Feb. 24, 2022. Aly Song/Reuters
David Chu
Olivia Li
Updated:
0:00

China’s local governments are reporting worsening financial conditions. Their debt ratios have been increasing yearly, posing greater challenges in effectively managing financial risks.

China experts say that with 31 provincial-level governments across the country entering an irreversible and deep financial deterioration and the central government standing firm against bailouts, debt defaults are inevitable.

David Chu is a London-based journalist who has been working in the financial sector for almost 30 years in major cities in China and abroad, including South Korea, Thailand, and other Southeast Asian countries. He was born in a family specializing in Traditional Chinese Medicine and has a background in ancient Chinese literature.
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