Guizhou Grapples with Debt Hangover from Infrastructure Splurge

Guizhou province in China faces debt problems after years of infrastructure overspending and lack of profitable industries to pay off debt
Guizhou has cut infrastructure spending this year by 60% but still has high debt equal to 72% of GDP, exceeding government limits
Controversies include an LGFV 20-year loan rollover, officials wastefully spending on tourism, and a businesswoman unable to get payment from local government
Analysts say resolving Guizhou's debt will take years due to past investment-driven model and pandemic impacts on tourism
China's finance minister pledges to improve local debt management and resolve risks through high-quality development