‘Crush them’: are China’s local governments using unsustainable tactics to repay debt?
From ‘smashing pots’ to special bonds, regional officials are running out of ways to squeeze businesses for more money, experts say
The recording is presented as a conversation between an unnamed representative of a medical technology company and a market regulation enforcement officer, surnamed Zhang, from Chengwu county in eastern China’s Shandong province.
In the four-minute conversation, the cadre uses a threatening tone to discuss how his county has a revenue target that must be collected from businesses each year to meet budget shortfalls.
“I must admit that I know little about helping businesses to thrive,” Zhang is heard saying in the recording. “But I definitely know how to crush them.”
The conversation shines a light on the desperation faced by local governments struggling to come to terms with bleak finances and debilitating debt, and the lengths some municipal officials have resorted to in an effort to pay down that debt.
It is not known who made the recording or who posted it, but it quickly went viral, sparking a flood of online reactions ranging from resentment to worry.
“This is the current situation facing the survival of private enterprises,” said one commenter.
