Understanding local government debt in China

<div>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.<br> <br> In this episode of The Sound of Economics, <a href="https://www.bruegel.org/people/giuseppe-porcaro">Giuseppe Porcaro</a> and <a href="https://www.bruegel.org/people/alicia-garcia-herrero">Alicia García-Herrero</a> explore this debt burden with <a href="https://www.bruegel.org/people/michael-pettis">Michael Pettis</a>, exposing the structural problem in China’s growth model which over-relies on investment.<br> <br> 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. <a href="https://bruegel.secure.force.com/events/UpdateAcc?sf=1&amp;s4=1">Sign up now</a> to receive it in your mailbox!</div>