Chinese Premier Li Qiang Chairs State Council Executive Meeting, Demands Advancement of Local Government Debt Resolution Work
Chinese Premier Li Qiang chaired a State Council executive meeting, urging the advancement of local government debt resolution and the strengthening of their independent repayment capacity. By the end of February, China's local government debt balance was approximately RMB 56.6 trillion.
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- 📰 Published: May 10, 2026 at 12:13
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Central News Agency reporter Liao Wen-chi, Shanghai, May 10th.
Chinese Premier Li Qiang chaired a State Council executive meeting on May 9th, calling for the advancement of local government debt resolution work and the strengthening of local governments' independent repayment capacity. As of the end of February, China's local government debt balance was approximately RMB 56.6 trillion.
According to Xinhua News Agency, the State Council executive meeting on May 9th discussed promoting work related to resolving local government debt risks. The meeting pointed out that since the deployment and implementation of a package of debt resolution plans, significant achievements have been made in resolving debt risks. It was emphasized that efforts should continue to focus on key areas and weak links, consolidate local entities' responsibilities, improve policies supporting debt resolution, enhance local governments' independent repayment capacity, and ensure the timely completion of debt resolution tasks.
The meeting also mentioned the need to establish and improve long-term mechanisms to resolutely prevent new hidden debts.
Local government debt is one of the key economic and financial risks that China has been preventing in recent years. Authorities have adopted various measures to mitigate risks, including the introduction of a total of RMB 10 trillion (approximately NT$46 trillion) in debt resolution resources in November 2024. This plan aims to allocate a debt quota of RMB 2 trillion annually from 2024 to 2026 to replace existing hidden local government debt. Additionally, from 2024 to 2028, RMB 800 billion will be allocated annually from new local government special bonds specifically for debt resolution.
According to a report by mainland media outlet Caijing on April 13th, as of that day, local governments had already issued approximately RMB 1.3 trillion in government bonds to replace existing hidden debts, accounting for about 46% of the annual planned issuance of RMB 2.8 trillion. Data from China's Ministry of Finance shows that as of the end of February this year, the national local government debt balance was approximately RMB 56.6 trillion.
Chinese Premier Li Qiang chaired a State Council executive meeting on May 9th, calling for the advancement of local government debt resolution work and the strengthening of local governments' independent repayment capacity. As of the end of February, China's local government debt balance was approximately RMB 56.6 trillion.
According to Xinhua News Agency, the State Council executive meeting on May 9th discussed promoting work related to resolving local government debt risks. The meeting pointed out that since the deployment and implementation of a package of debt resolution plans, significant achievements have been made in resolving debt risks. It was emphasized that efforts should continue to focus on key areas and weak links, consolidate local entities' responsibilities, improve policies supporting debt resolution, enhance local governments' independent repayment capacity, and ensure the timely completion of debt resolution tasks.
The meeting also mentioned the need to establish and improve long-term mechanisms to resolutely prevent new hidden debts.
Local government debt is one of the key economic and financial risks that China has been preventing in recent years. Authorities have adopted various measures to mitigate risks, including the introduction of a total of RMB 10 trillion (approximately NT$46 trillion) in debt resolution resources in November 2024. This plan aims to allocate a debt quota of RMB 2 trillion annually from 2024 to 2026 to replace existing hidden local government debt. Additionally, from 2024 to 2028, RMB 800 billion will be allocated annually from new local government special bonds specifically for debt resolution.
According to a report by mainland media outlet Caijing on April 13th, as of that day, local governments had already issued approximately RMB 1.3 trillion in government bonds to replace existing hidden debts, accounting for about 46% of the annual planned issuance of RMB 2.8 trillion. Data from China's Ministry of Finance shows that as of the end of February this year, the national local government debt balance was approximately RMB 56.6 trillion.