China Official Says Increasing Debt Level Feasible and Necessary
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China’s plans to raise its debt level to stimulate demand and combat the economic effects of the coronavirus pandemic are feasible and necessary, a senior official at the country’s top economic planning agency said Sunday.
The government’s plan to raise its fiscal deficit and sell anti-virus government bonds are “special measures” in response to an unprecedented environment, and the scale of the borrowings takes into account both the economic impact and the need to control debt-related risks, according to Cong Liang, a senior official at the National Development and Reform Commission.