China's Deadbeat Local Governments

10% of GDP in unpaid bills.

Local government unpaid bills amount to a full 10% of China’s GDP. Recall that their revenue has been tied to land sales, which have crashed. Many cities have new leadership and they are uninterested in cleaning up the messes left by their predecessors, despite the fact that using the new stimulus bonds to clear this debt WOULD provide massive stimulus to the economy.

A notable scholar who cautioned against China becoming joined at the hip to Putin has been forced into early retirement. An academic retiring would be a non-event in the west, in China this is the government telegraphing its intentions.