China Announces US$1.4 Trillion Debt Relief Package for Local Governments

TaiwanPlus News

Beijing has announced a US$1.4 trillion package aimed at relieving the "hidden debt" of China's local governments, brought about by infrastructure investments made through risky government financing platforms.

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00:00China has announced a 1.4 trillion U.S. dollar debt relief package for local governments.

00:06The package is aimed at stabilizing China's economy, which has been slowing amid low domestic

00:11demand.

00:12It will go toward helping local governments replace so-called hidden debts.

00:16Those are a result of investments in infrastructure projects made through risky government financing

00:22platforms.

00:23The International Monetary Fund estimated China had more than 20 trillion U.S. dollars

00:27in central and local government debt in 2023, or about 117 percent of its GDP.

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