China's efforts to tackle hidden debt may fall short

Title Why China's drive to resolve hidden government debt could fall short
Some estimates indicate nation has around $10tn in such debt
Debt restructuring or swaps for local government financing vehicles, either through banks or special refinancing bonds, will only provide temporary relief against an imminent liquidity crisis, scholars and analysts say.
China's central government has rolled out new measures since mid-2021 to help local governments swap or restructure their off-the-books borrowing to control debt risk
However, the scale of China's hidden local government debt - up to over $9.8 trillion per some estimates, is more than twice Germany's GDP - means the measures are far from adequate and will only temporarily relieve what experts say is an impending liquidity crisis for regional authorities