Some local government owned enterprises in China have begun pulling back from funding regional projects in response to a campaign from Beijing to curb implicit liabilities, amid fears of financial contagion.
With the 20th party congress less than two weeks away, Premier Li Keqiang’s latest economy-boosting directives to local authorities ‘will have some effect, but don’t expect too much’, researcher says.
Local-level coffers are running low in some parts of China as the government sticks with its restrictive zero-Covid policy, and there are rising concerns that public services could be adversely affected.