Despite facing rising tariffs and trade barriers globally since the U.S.-China trade war began in 2017, Chinese exports have surprisingly continued to grow. Total annual exports have expanded by 58% since 2017, reaching a staggering $3.58 trillion, which is a performance far better than many analysts predicted given the severity of the trade conflict.
The rapid growth of local government debt in China is a potential threat to the country’s financial stability. At the root of the debt problem is a severe fiscal imbalance that is driven by domestic politics.
