China's Indebted Provinces Face Economic Slowdown as Debt Burdens Mount

China's poorest regions like Tianjin, Guizhou, Yunnan, and others face economic slowdown due to high debt levels. Their investments and growth are declining.

Many provinces owe far more debt than their fiscal revenues can cover. Tianjin's debt is almost 3 times its revenue.

Indebted provinces are issuing new bonds to repay old debts, raising concerns about a vicious debt cycle.

Questions remain if Beijing’s debt-swap plan is sufficient to resolve the crisis. More asset sales and private investment may be needed.

Central government announced 1 trillion yuan sovereign debt plan to help local authorities’ reconstruction without adding to their debt burden.