China steps up hidden local debt clean-up, builds long-term safeguards

China aims to eliminate Yuan 12.3 trillion ($1.8 trillion) of local government hidden debt over a five-year period (2024-2028). With more than half of this timeframe already passed, the government has recently issued updated measures to address remaining hidden debt risks.

On May 9, the State Council executive meeting reviewed measures to advance the resolution of local government debt risks. The meeting noted that the comprehensive debt resolution plan has achieved significant progress, and emphasized the need to target key areas and weak links, strengthen accountability for local authorities, improve supportive