There are probably many other places that have debt levels that are just as high it just hasn't been announced and there are many other places in similarly diaphiscals straits. The population declines especially the northeast of China is seeing are incredibly incredibly damaging the economy. It's super important that the government be seen to take action on this and do it in a way that is has a meaningful impact on the people's lives.
Hegang, a remote coal town in northern China that faced a mountain of debt, was forced to undergo an unprecedented financial restructuring. And it’s not alone. A local debt problem in some of China’s cities threatens to be a drag on the world’s second-largest economy for years to come.
Bloomberg’s Colum Murphy and James Mayger join this episode from Beijing to talk about what’s happening in Hegang and other cities, and why China’s local debt challenges may be felt well beyond its borders.
Read more: China’s $23 Trillion Local Debt Mess Is About to Get Worse
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