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Beijing’s secret weapon to control its local governments is causing a financial meltdown
Of China’s 32 provinces, direct cities, and regions, only 6 local governments are financially sound. The other 26 localities were in the red in 2022. Some were 300% in the red. Can these 6 cities and regions carry the country financially? And how does the central government control the local governments through tax revenue allocations? How do we quantify the fiscal war between the central and local governments?
References:
http://www.gov.cn/xinwen/2023-01/31/content_5739311.htm
https://www.youtube.com/watch?v=9p3ODtMJyzw&t=665s
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