BEIJING — Just as a single decisive move can energize a chess game, China”s latest initiative to address local government debt risks marks a crucial step in revitalizing the growth prospects of the world’s second-largest economy.
The move comes as China gears up to navigate economic headwinds both at home and abroad, with a supportive fiscal policy serving as a crucial pillar to sustain a steady and robust recovery.
Local governments, the linchpins of the country’s fiscal outlays, were stuck in a dilemma of high debts and falling revenues, bringing challenges to the efforts of bolstering the economy. With the debt-relief package, a well-timed financial adjustment to ease local governments’ financing strains, the…
