Some China’s local governments admitted that they could no longer handle their debts and called for central government’s help. The Research Center on Development, Guizhou Province said that Guizhou Province “is unable to effectively resolve the (local debt) problem on its own.” The center made the statement in a report “Study on the Resolution of Local Government Debt,” which pointed out that local debt is a significant and urgent problem, but it is extremely difficult for the local governments to resolve it due to their limited financial capability. The report is unavailable on the Internet now.
Some local governments in Yunnan Province also reported desperate debt situation. By end of 2022, Yongping County’s total debt reached 3.44 billion yuan (US$500 million). Its debt ratio reached 991 percent and fiscal self-sufficiency rate was only 15.66 percent. Tengchong City also claimed financial difficulty where its fiscal capability could just keep the government payroll going.
Source: China News Agency (Taiwan), April 28, 2023
https://www.cna.com.tw/news/acn/202304280110.aspx