In Depth: To Keep Stimulus Flowing, China’s Local Governments Need a Budget Fix

For China, fixing a slowing economy may hinge on making sure local governments aren’t strapped for cash.

In the wake of the country’s worst Covid outbreak since 2020, central government policymakers have introduced a package of measures to stimulate growth, including tax and fee cuts, deferred social insurance payments for companies, more credit support for small businesses, and accelerated bond issuances to finance infrastructure construction.