Chinese local governments paid $148bn in interest in 2022

Beijing aims to bolster COVID-hit economy with more public spending

20230131 Caixin Main.jpg

Eighteen Chinese provinces and municipalities unveiled plans to sell more than 1 trillion yuan of local government bonds during the first quarter of 2023.

CHENG SIWEI and DENISE JIA, Caixin

China paid more than 1 trillion yuan ($148 billion) in interest on local government debt last year as the country issued a record amount of local government bonds to bolster the economy with increased public spending.

In 2022, China issued 4.76 trillion yuan of new local government bonds, a record since local governments were enabled to borrow on the open market starting in 2015, according to data released on Sunday by the Finance Ministry.

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