China’s $23 Trillion in Local Debt Spurs Calls for Property Tax

China’s provincial governments are facing unprecedented debt burdens following a collapse in land sales, a slowing economy and increased spending on Covid testing and lockdowns over the years.

Investors are becoming increasingly worried about the massive debt pile, which Goldman Sachs Group Inc. estimated this week has reached $23 trillion — or 126% of GDP — if off-budget borrowing by local governments are included. Curbing local debt risks was also highlighted by President Xi Jinping as a key challenge officials must tackle this year.

The issue has been a topic of discussion at several high-profile business forums in China ...