CNBC’s The China Connection newsletter: The ‘cliff’ beneath China’s cities
Summary
China faces growing economic risks as highly indebted local governments sharply reduce their spending. Although the central government in Beijing maintains the capacity to borrow, these local cutbacks create significant challenges for overall national growth and the management of regional financial obligations.
Beijing has room to borrow, but heavily indebted local governments are cutting back, raising the stakes for growth and for how China manages its local debt.
Source: Read the full story at US Top News and Analysis
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