Trillions in hidden debt drove China’s growth – now it threatens its future

Liuzhou's unfinished light-rail project racked up massive debt but remains unused. (Image: WSJ)

Mon, 15 Jul 2024

By Brian SpegeleLiuzhou officials were bullish about the future of their factory town in early 2019. The economy was prospering, a new industrial district was on the way, and an elevated light-rail system was taking shape.“The achievements of the past year have not come easily,” Mayor Wu Wei said in a city report at the time. He credited the grit of local party leaders – but didn’t mention an ace in the hole.For years, Liuzhou and scores of other Chinese cities together amassed trillions of dollars in off-the-books debt...

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