China Ministry of Finance Debt Unit 2025 Formed to Curb Local Risks

The China Ministry of Finance debt unit 2025 has been established to tighten oversight of central and local government borrowing and reduce fiscal risks. The new department will set debt limits, manage issuance and repayment, draft regulations, and monitor implicit liabilities from local-government financing vehicles. Li Dawei has been appointed to lead the team, following a USD1.40tr debt-relief package launched in 2023. The unit will coordinate provincial quotas, swaps, and surveillance systems to prevent hidden debt accumulation while ensuring funding for infrastructure and essential services. The initiative reinforces Beijing’s pledge to strengthen debt control over the next five years.