At the time of China's economic slowdown, US media quoted data reports that two -thirds of local governments in China may now break through the non -official debt threshold set by the Beijing Central Government.It is more than 120%of the income.
Reporting by the Wall Street Journal described that China tried to endorse one of the slowest growth stages since the 1970s, but the domestic economy was dragged down by the huge debt of the local government.These debts expanded during the crown disease and began to be at a critical moment.
Reporting pointed out that China's dynamic clearance resistance policy has carried the city's $ 1 billion (Same as the same, about $ 100 million about S $ 135 million in large -scale nucleic acid testing and sealing.) The planned planned expenses; at the same time, China's deleveraging rectification of the real estate market has led to a sharp decline in land sales and one of the largest sources of income.
The global calculation of S & P shows that given that last year's non -repayment debt exceeds 120%of the income, two -thirds of local governments in China may now break through the central government set.Non -official debt threshold.
According to a survey by the New York research institution Rongding Group, about one -third of China's major cities in China are even difficult to pay for the interest that only the debt owed.An extreme example is that in Lanzhou, the capital of Gansu Province, interest expenses in 2021 are equivalent to 74%of fiscal revenue.
A joint rating international study of a subsidiary of a large -scale rating agency in China shows that about 84%of the 84.2 billion US dollars of overseas debt held by the local government's financing platform will expire between this year and 2025Essence
Reported that although economists do not rule out urban defaults and trigger a financial crisis, what is really worrying is that the city will have to continue to reduce expenses, delay investment or take other actions to deal with creditors.It will damage urban development in the next years.
The report quoted Michael Pettis, a professor of finance at Peking University, said: "The real trouble caused by debt of these localities is not the financial crisis, but it will make it difficult for the cost of sharing these debts in the next years."
According to official statistics, 31 provincial governments in China have a total of about $ 5.1 trillion in debt, including bonds held by local and foreign investors.
These statistics do not include various out -of -surface debts, that is, the debt raised by the so -called local government financing platform. These financing platform tools have surged in recent years and used to give infrastructure construction andOther expenditure items provide funds.According to data from the International Monetary Fund, the debt brought by these government financing instruments is expected to reach nearly $ 10 trillion this year.
According to the EU data, as of the third quarter of 2022, the total debt raised by these local government debt platforms in China exceeded the sum of government debt in Germany, France and Italy.
The Wall Street Journal reported that some analysts said that the Chinese government is unwilling to make a more stable change in the local government's finance, such as the implementation of real estate taxes to enrich fiscal revenue, because such changes are politically unpopular in terms of people's hearts.It may also weaken the central government's control.
In addition, the sale of more state -owned assets may violate the goal of the central government, that is, the use of state -owned enterprises to achieve strategic intentions, such as self -sufficiency of key technologies.
