True Left

In order to meet Beijing's ambitious growth targets, local governments have amassed huge debts as domestic demand has slowed and this practice has become unsustainable. In this video we explain this brewing economic crisis and why it's bad news for China.

Global investors are increasingly getting concerned over the escalating debt levels of China’s local governments. Several provinces and cities are grappling with billions in loans. According to an IMF report, the local governments' collective debt stands at an astounding $10 trillion. Palki Sharma tells you more.