In trouble

Author: | Published: 11 Dec 2018

Against the backdrop of the ongoing US and China trade war, China is creating policies to boost its weakening economy. But how will these sit with its continuous efforts on deleveraging?

Faced with the effects of President Trump's tariffs on Chinese goods and an economic slowdown, the PRC has encouraged local governments to increase support for infrastructure spending. For instance, caps on the amount of debt that banks can underwrite for local government bonds were removed in September to encourage more issuances by the end of 2018. There was previously a ceiling of...