Chinese Provinces Accrue Billions in Hidden Debt, Exacerbating China's Debt Crisis
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Local governments and state banks in 7 Chinese provinces violated rules by taking on hidden debts, contributing to China's overall debt crisis.
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Hubei officials illegally borrowed from public companies to fund construction projects, accumulating 21.48 billion yuan in hidden debt.
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An Agricultural Development Bank branch illegally offered loans to local governments in Xian, causing 1.276 billion in hidden debt.
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Hidden debts could total 30-50 trillion yuan, compared to China's 120 trillion yuan GDP in 2022.
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China aims to accelerate government bond issuance to better leverage fiscal policy and ease local government debt burdens.