Several local governments in China are facing serious debt crises in the face of escalating economic pressures. Although the term "bankruptcy" isn’t used by the Chinese government, some cities are de facto insolvent.
On Dec. 28th, 2021, Chinese media outlet "Caixin" published a report with the headline: "Heigang Heilongjiang Province Announces Financial Restructuring, Insufficient Financial Strength to Pay Principal and Interest on Maturing Government Debt". This news made the city in northeast China the first Chinese city to publicly declare de facto bankruptcy.
Later, on Jan. 17th, 2022, another city in eastern China publicly announced that its GDP growth for 2021 would be zero. Based on the Chinese government’s habit of making highly skewed data, the city’s real GDP growth is probably negative. Data shows that most local governments in China can’t make ends meet and their debt ratios are well above the common warning line. It’s likely that many cities are already on the path to bankruptcy.
Covering a wide range of stories about or related China and its role in the world.
Have questions? Do you have something to share with us about China? We want to hear from you!
Email: Cinsights.subscription@gmail.com
Facebook www.facebook.com/EyesOnChina.
Copyright @ China Insights 2021. Any illegal reproduction of this content in any form will result in immediate action against the person(s) concerned.
ChinaBeijingXi Jinping
