Explainer
Why China Is Hoping $1.6 Trillion Can Fix Its Hidden Debt Problem
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China’s government has spent at least 3 trillion yuan ($408 billion) in the last six months to bankroll its hugely indebted local governments.
It’s part of a 12 trillion yuan package — the largest policy move ever related to local governments — announced by Beijing in November 2024, in an effort to deal with off-balance-sheet “hidden debt.”