, Columnist
China Has a Debt Ceiling Problem of Its Own
By leaving local governments with the bulk of the debt, Beijing has failed to account for the fiscal damage done by Covid Zero and the property downturn.
A huge burden.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China is cheerfully watching the debt ceiling fight in the US. A divided Congress, the threat of a government shutdown, as well as last-minute scrambles to avert defaults serve to undercut the strength of the Biden administration and bolster President Xi Jinping’s belief that Western-style democracy is inferior.
However, as top politicians convene this week in Beijing for the annual National People’s Congress, where the nation’s economic growth target and fiscal budget will be unveiled, China needs to deal with economic tensions within its own ranks too.