Amid China’s economic woes, US can gain clout with indebted countries: analysts

China's Belt and Road Initiative is facing financial troubles as approximately $78 billion worth of external loans are either in default or under renegotiation, giving the US an opportunity to gain leverage with indebted countries.

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8/21/2023

China Local Governments to Sell $206 Billion of Financing Debt

China is considering providing cheap funding to local government financing vehicles (LGFVs) in an effort to address debt concerns and improve their cashflow amid mounting risks, according to reports, with the central bank potentially setting up an emergency liquidity tool to provide low-cost, longer-term funds. The move comes as authorities also mull plans to cut LGFV debt, including allowing provincial-level governments to raise about 1 trillion yuan through special bonds sales to repay the debt of LGFVs and other off-balance sheet issuers. The measures are part of China's efforts to address the major economic and financial risks posed by LGFV debt.

8/28/2023

Paid Late, or Never: Painters, Builders and Realtors Hit by China’s Property Crisis

China's property crisis has left small businesses and workers owed hundreds of billions of dollars, with suppliers waiting on at least $390 billion in payments, as new projects dry up and financial troubles plague real estate developers like Country Garden.

9/7/2023

China's BRI losing steam as loans turn sour, new investments decline: Report - Times of India

China's Belt and Road Initiative is facing challenges and losing steam due to economic downturn, rising debt, defaults, and the impact of COVID-19, prompting a rethink by Beijing to boost profitability and address concerns about the debt burden on participating countries.

9/20/2023

China's Hidden Local Debt Crisis Balloons to Trillions as Authorities Scramble for Solutions

China's local authorities have amassed trillions of dollars in hidden debt, requiring the central government to consider drastic measures like enabling the sale of bad debt to asset managers and increasing tax revenue allocation to resolve the issue.

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Posted 8/21/2023, 10:10:12 PM