Local governments in China are still building highways, bridges and railways, as pictured here in Jiangxi province on Sept. 6, 2024.
That's cutting significantly into local government revenue, especially at the district and county level, according to S&P Global Ratings analysts.
watch now"Macroeconomic headwinds continue to hinder the revenue-generating power of China's local governments, particularly as related to taxes and land sales," she said.
Jiangsu, Shandong, Shanghai, and Zhejiang — some of China's top provinces in tax and non-tax revenue generation — see non-tax revenue growth exceeding 15% year-on-year growth in the first half of 2024, S&P's Huang said.
China's national taxation administration in June acknowledged some local governments had issued such notices but said they were routine measures "in line with law and regulations."
Persons:
Huang, P's Huang, Camille Boullenois, Laura Li, Morgan Stanley, Chetan Ahya, Robin Xing
Organizations:
Getty, BEIJING, Global, CNBC, NingBo BoHui Chemical Technology
Locations:
China, Jiangxi, Beijing, Zhejiang, NingBo, Jiangsu, Shandong, Shanghai, Asia