China Needs Much More Central Government Debt, Key Adviser Says
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China should issue much more central government debt to make up for the inability of cash-strapped local authorities to spend money and drive growth, according to one of the country’s leading economists.
The ratio of central government debt to China’s gross domestic product — currently around 20% — should be more than doubled, Li Daokui, a regular policy adviser to the government, told Bloomberg TV on Monday.