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Local government key to reigniting China’s economy

Concerned by the social risks of high unemployment and falling asset values, the government of Xi Jinping is trying to reboot the economy from the ground up. Refinancing local government is the key.

Jessica Sier
Jessica SierNorth Asia correspondent

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Beijing | Young chemistry graduate Li Peng is lucky to see a nightclub half-full of patrons these days. She says Beijing’s dance venues don’t hum like they did before COVID-19 upended the world’s second-largest economy.

Police raids and regular drug tests partly explain the drop-off in custom, but the thinner crowds also reflect the country’s broader economic downturn.

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Jessica Sier is the North Asia Correspondent for The Australian Financial Review. She is based in Tokyo, Japan. Jessica has previously written on technology, global capital markets and economics. Connect with Jessica on Twitter. Email Jessica at jessica.sier@afr.com

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    Original URL: https://www.afr.com/world/asia/local-government-key-to-reigniting-china-s-economy-20241022-p5kke8