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[Economist Suggests Central Government Take Over Local Debt To Boost Chinese Economy] Tsinghua University Economist David Li Daokui Advises The Chinese Central Government To Assume At Least 20 Trillion Yuan ($2.8 Trillion) Of Local Government Debt, Which Totals An Estimated 10 Trillion Yuan In Arrears Owed To Contractors And Civil Servants (7% Of China's GDP). He Suggests The Central Government Sell Bonds To Purchase Regional Debt And Expand Consumer Product Upgrade Incentives From 300 Billion To 800 Billion-1 Trillion Yuan To Boost Consumption Amid Trade Tensions And Deflation. Local Governments Held Over 47 Trillion Yuan In On-balance Sheet Debt As Of The End Of 2025, Along With Approximately 60 Trillion Yuan In Hidden Debt, According To The IMF.
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