China’s government debt is under control and remains at safe levels, Chinese Premier Wen Jiabao said in comments released Monday, even as the National Audit Office highlighted potential risks for financial sectors this year.
Wen said the central government would guard against risks posed by local government debt, in comments that were presented at a high-level economic meeting Jan. 6, but not released in full detail until Monday by state newspaper People’s Daily.
“At present, government debt is generally safe and controllable,” Wen said, adding that Beijing was “very serious” about effectively managing local-government debt, a recent source of concern in terms of possible default.
Wen’s remarks were contrasted with a weekend statement by the National Audit Office, which warned of “unignorable” risks in some areas as global economic uncertainties rise.
The auditor said that China’s economy isn’t yet balanced, coordinated or sustainable, though it didn’t elaborate on the risks. See report on China auditor’s remarks.
