China Creates Finance Ministry Debt Management Unit to Bolster Oversight
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China’s Ministry of Finance
China’s Ministry of Finance has created a new department to oversee government debt, consolidating responsibilities previously spread across multiple offices in an effort to strengthen fiscal oversight.
According to a Monday update on the ministry’s website, the newly established Debt Management Department will be led by Li Dawei, with Qu Fuguo and Zhao Zeyong serving as deputy directors. The department consists of six offices covering general affairs, central government debt, two divisions for local government debt, issuance and repayment, and monitoring.
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- China’s Ministry of Finance established a dedicated Debt Management Department, led by Li Dawei, to centralize and strengthen government debt oversight.
- By September 2025, over 60% of local government financing vehicles (LGFVs) had cleared their debts, with both the number and operating debt balances of LGFVs dropping 71% and 62% from March 2023.
- The department aims to build a sustainable regulatory framework, resolve hidden debts, and enforce stricter discipline to prevent new liabilities.
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What Happened When
- March 2023：
- Baseline reference date for LGFV numbers and outstanding operating debt balances used for comparison.
- As of June 2025：
- More than 60% of local government financing vehicles (LGFVs) had been removed from the phase-out list, indicating their debts were resolved.
- September 2025：
- Caixin reported that the Ministry of Finance was preparing to establish a specialized debt management body, with Li Dawei expected to lead it.
- By the end of September 2025：
- Both the number of LGFVs and their outstanding operating debt balances had fallen by 71% and 62%, respectively, from March 2023 levels.
- October 2025：
- Finance Minister Lan Fo’an published a recent article stating China would continue addressing debt risks while maintaining growth and would fully implement the debt resolution plan.
- November 3, 2025：
- China’s Ministry of Finance announced on its website the creation of the new Debt Management Department, with Li Dawei as director and Qu Fuguo and Zhao Zeyong as deputy directors.
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