China's Local Government Debt Impact on Private Firms and Social Trust

Sunday, 7 April 2024, 00:00

The local government debt issues in China are negatively affecting private companies and leading to distrust at the grass-roots level, according to Wuhan University professor Feng Chuan. The problems with local government debt have disrupted the social governance order that relies on trust.
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China's Local Government Debt Impact on Private Firms and Social Trust

China's Local Government Debt Impact

Professor Feng Chuan from Wuhan University highlights the repercussions of local government debt issues in China.

Key Findings:

  • Private Firms: Experiencing challenges due to debt woes.
  • Grass-roots Distrust: Emerging as a consequence of the breakdown in the trust system.

According to Feng Chuan, the social governance order in China is at risk due to these developments.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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