The goal of Chenahou is common prosperity defined. President Xi Jinping believes that there are inequalities in the economy. The crackdown on tech and after-hours schooling was a step by Xi to address that. It's kind of like a combination of dialing back the excesses of the rich while giving the poor a helping hand with the aim of narrowing income equality.
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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