China’s debt problems will take years to resolve: analysts

China’s economy will not crash but property and local government debt challenges are undermining a country whose GDP is still growing at around 5% a year.

BigThink BigThink
Dec 5, 2023 - 21:01
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China’s debt problems will take years to resolve: analysts

China’s economy will not crash but property and local government debt challenges are undermining a country whose GDP is still growing at around 5% a year.

December 05, 2023

There are serious challenges in China’s property market and local government debt, but the Chinese government is capable of solving them, according to expert analysts.

However, it will take years to resolve these deepseated problems, which will meanwhile hurt other sectors of the Chinese economy, they said.

Debt for the central government is a small issue, but for some local governments, it may take five years or more to resolve their debt problems, an analyst with a US investment advisory told FinanceAsia.

“Local governments depend on too much of their income coming from land sales revenue. In extreme cases, land sales...

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