Understanding local government debt in China

China's growth model, marked by excessive investment and a high
savings rate, has led to the accumulation of local government
debt and a skewed balance between consumption and
investment.

In this episode of The Sound of Economics, Giuseppe Porcaro and
Alicia García-Herrero explore this debt burden with Michael
Pettis, exposing the structural problem in China’s growth model
which over-relies on investment.

This episode is part of the ZhōngHuá Mundus series of The Sound
of Economics. ZhōngHuá Mundus is a newsletter by Bruegel,
bringing you monthly analysis of China in the world, as seen from
Europe. Sign up now to receive it in your mailbox!