Editorial: China’s Local Debt Problem Needs a Comprehensive Solution

In recent days, the market’s attention has been drawn to news that 12 provincial-level regions are delaying or halting some of their local infrastructure projects. This development stems from a State Council directive issued at the end of 2023, instructing the 12 regions to categorize and strengthen government investment this year. The document delineates areas for strict control over new projects, support for essential projects, and the slowing or halting of ongoing projects.