Debt Accumulation and Tensions between Central and Local Governments in China

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

This chapter explores the issue of debt accumulation by local authorities in China and the impact it has on the central government. It discusses the measures taken by the central government, such as sending professionals to assess the seriousness of the problem, and the tension between the central government and local authorities regarding responsibility for resolving the debt issue.

US stocks hit a five-week low as a warning of potential Fitch downgrades sent bank shares lower, Beijing is making one of its biggest top-down efforts in years to tackle the debts racked up by local governments, and a year after passage of the US Inflation Reduction Act and Chips Act the vast majority of investment is going to red states.

Mentioned in this podcast:

US and European stocks hit five-week lows after strong retail sales data

China sends finance experts to tackle regions’ debts

Republican districts dominate US clean technology investment boom

Pink Floyd strike a chord as scientists recreate song from brain activity

The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. Additional help from Josh Gabert-Doyon, Monique Mulima, Monica Lopez, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

Hosted on Acast. See acast.com/privacy for more information.