The new finance minister said that China is systematically moving towards resolving local government debt risks. His appointment comes at a time when Beijing is not avoiding raising debt and public spending to boost its economy.
Last month, China’s top parliamentary body approved the issuance of government bonds worth 1 trillion yuan ($140 billion) in the fourth quarter. The amount received from these funds will be used to reconstruct areas affected by floods at the beginning of the year.
China’s economy grew faster than expected in the third quarter, raising the odds that Beijing will meet its annual growth target of about 5%. However, challenges remain as the country faces a worsening real estate crisis and private companies continue to shy away from investment due to low levels of confidence.
Lan Fon, 61, became finance minister last month. Prior to this position, he had been serving as Communist Party leader in the Ministry of Finance since September, succeeding Liu Kun, who had held the position since 2018. Before his appointment to the Ministry of Finance, Lan was party chief of Shaanxi Province in northern China.
Source: Reuters
Cover image source: Shutterstock
