MNI’s David Wilder reports an economist and advisor to the Chinese government says the country’s economy is officially in a crisis as debt costs spiral upward.
Xia Bin, of the State Council’s Development Research centre, also said authorities need to stop mincing words about the situation.
…[Xia] said Beijing needs to stop using bland rhetoric about “stabilizing the economy” and focus on tackling a debt burden whose interest payments alone tally nearly CNY6 trillion a year.
Although monetary printing presses have kept the worst of the crisis at bay, the central government needs to face up to China’s debt problem and brace the market for a deep and painful adjustment, he told a forum here at the weekend.
“We need to find ways to let the bubble burst and write off the losses we already have as soon as possible to avoid an even bigger crisis,” Xia said.
Wilder notes interest payments now total nearly CNY6 trillion a year.
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