english.aawsat.com
China's $839 Billion Debt Plan
China unveils a massive $839 billion plan to tackle local government debt and stimulate economic growth.
English
Syria
EconomyChinaGovernmentFinanceDebt
National People's CongressThe Associated Press
Xu HongcaiLan Fo'an
- What are the main reasons behind the increase in local government debts in China?
- The economic measures are in response to the slow recovery from the COVID-19 pandemic, a downturn in the property market, and low tax revenues. Previous measures to boost the economy were piecemeal and less impactful.
- How will the plan affect the ceiling for special bonds issued by local governments?
- The ceiling for special bonds issued by local governments will be raised to 35.52 trillion yuan ($4.96 billion). This aims to increase funding for local governments.
- What is the total amount of the plan approved by China to help local governments refinance their debt?
- China approved a 6 trillion yuan ($839 billion) plan to help local governments refinance their debt over three years. This is part of a larger effort to boost economic growth.
- What are the longer-term economic goals of the Chinese government alongside the current economic stimulus measures?
- While short-term economic stimulus is a focus, longer-term goals like building a high-tech and green economy remain central for the Chinese government.
- What is the estimated amount of hidden local government debt at the end of 2023, and what is the projected amount by the end of 2028?
- The plan aims to reduce hidden local government debt from 14.3 trillion yuan ($2 trillion) to 2.3 trillion yuan ($320.9 billion) by the end of 2028.