Chinese Minister of Finance Xiao Jie answers questions on reform of fiscal and taxation system and financial work at a press conference for the fifth session of the 12th National People's Congress in Beijing, capital of China, March 7, 2017. (Xinhua/Li Xin)
China's finance minister on Tuesday reiterated confidence in controlling debt risks despite some irregularities in local governments' financing activities.
"China's government debt risks are generally within control," Finance Minister Xiao Jie said at a press conference on the sidelines of the annual parliamentary session.[Special coverage]
By the end of last year, combined debt of central and local governments in China stood at 27.33 trillion yuan (about 3.96 trillion U.S. dollars), with the debt-to-GDP ratio at around 36.7 percent, Xiao said, adding there won't be big changes in the ratio this year.
Compared to international levels, the relatively low ratio allows room for the government to further raise debt, Xiao noted.
Acknowledging the existence of illegal debt-raising practices by some local governments, the minister vowed to take multiple steps to contain debt growth.
To rein in rising debt risks, China overhauled the management of government bonds in 2014, streamlining fund-raising channels for local authorities while putting a cap on annual bond issues.
In November last year, China floated a four-grade emergency plan for local government debt risks, a precautionary arrangement for "fiscal re-balancing" on the part of local government.
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China punishes NEV manufacturers for fraudulent subsidy claims
China has punished a number of new-energy vehicle (NEV) manufacturers for fraudulently claiming subsidies, Finance Minister Xiao Jie said Tuesday.
"The combined amount of retrieved subsidies and penalties imposed on companies involved is about 2.3 billion yuan (about 333.5 million U.S. dollars)," Xiao told a press conference on the sidelines of the national legislature annual session.
