governments also hold a sizable

governments also hold a sizable

Blog Article

In fact, 40 trillion yuan of the debt of China’s local governments is only the “explicit debt” (ED) — debts that are formally recorded and payable. In reality, local governments also hold a sizable amount of “implicit debt” (ID) that is obviously understated and difficult to estimate. As for this part (ID), the total balance that is announced officially is 13.4 trillion yuan. By contrast, some Chinese economists estimate it to be around 40 trillion yuan. In this respect, the data obtained by the author from channels that temporarily cannot be made public is that the most accurate figure should be—60 trillion yuan. Therefore, the main target of the Chinese government’s 10 trillion yuan debt reduction plan is essentially pointed at the ID instead of the ED. สล็อต