As our “China’s Debt Hangover” has shown, China will need to reckon with its local debt problem sooner rather than later. Since 2022, the property sector bust and the pandemic have only made matters worse as local governments’ liabilities have risen and their finances deteriorated.
Great read!
Can you write about the footnote? Seems like a huge point to not relegate to a footnote.
"About two-thirds of that $6.5 trillion we consider to be at risk of default."
Thank you!