Analysts estimate China’s outstanding government debts surpassed 123 trillion yuan last year, of which nearly $10 trillion is so-called “hidden debt” owed by risky local government financing platforms that are backed by cities or provinces. As the financial pressure has mounted, regional governments have reportedly been slashing wages, cutting transportation services and reducing fuel subsidies in the middle of a harsh winter.
“No doubt, China’s current debt crisis has the potential to exacerbate existing socio-economic tensions,” Singleton said, adding that renewed public protests like those in late 2022 could emerge, as Chinese citizens come to terms with “vanishing jobs, closed businesses and reduced wages.
China is also invading the world with COVID variants. That too is war, a kind of asymmetric warfare without a declaration of war, but with a similar effect in the long term! PS.: And who demands compensation?