“Debt-fueled spending by local governments, partly for new buildings but also for roads, sewers, water systems and other projects, has been a growing worry in recent years for Beijing policy makers, as well as for economists and credit-rating agencies around the world. Most tallies of total local government debt in China tend to be in the vicinity of $2 trillion, equal to three months of China’s entire economic output, but some estimates are even higher.  A clear loophole in Tuesday’s directive is that it does little to rein in spending by enterprises partly or entirely owned by government entities.”

http://www.nytimes.com/2013/07/24/world/asia/china-orders-halt-to-construction-of-government-buildings.html?nl=todaysheadlines&emc=edit_th_20130724&_r=1&

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