China’s new tactics to manage mounting local government debt

China is paying greater attention to the growing local government debt that has reached critical levels. In 2024, central authorities allocated 1.2 trillion yuan to tackle the issue, while a dozen heavily indebted provinces and municipalities have suspended infrastructure projects. In this episode, CGTN Radio reporter Guo Yan joins us to examine the root causes of this mounting debt and explore potential new economic drivers that could help these regions reduce their reliance on infrastructure investment.