China's Local Governments Seek Alternative Funding Amid Debt Reduction Drive.

Local governments in China, burdened with debt, are seeking new ways to raise money as the central government prioritizes reducing financial risks. Direct debt of local governments exceeded 120% of revenue in 2022, and China's explicit local government debt nearly doubled over five years to $5.14 trillion last year. Local governments are turning to taxes, asset sales, and transfers to boost revenue, as property-related revenue remains under stress due to the real estate slump. The central government is increasing transfers to local governments and plans to boost support by another 3.6% this year. Some local governments are trying to generate extra income by restricting bike-sharing companies to a handful of bike share quotas, sold for a multi-year period.