On Sunday, the American agency "Bloomberg" reported on the chaos of the Chinese domestic debt estimated at about 23 trillion dollars, and explained that it is a crisis that is about to get worse and become a long-term economic burden.
The agency said China's local government debt problem is making investors increasingly nervous and threatens to weigh on the world's second-largest economy in the coming years.
According to the agency, the "Goldman Sachs" group estimates the total debt of the Chinese government at about 23 trillion dollars, a figure that includes hidden loans of thousands of financing companies established by provinces and cities.
The agency explained that while the probability of China's domestic debt default is relatively low, the bigger concern is that local governments of Chinese cities and counties will have to make painful spending cuts or divert money from growth-enhancing projects to continue reducing their debt.
The agency believes that this crisis puts Chinese President Xi Jinping's national project in the balance, related to his ambition to double income levels by 2035 while reducing the gap between the rich and the poor, which is essential for social stability.
Economists told the agency that China's aging and shrinking population meant that many cities lacked the workforce to sustain economic growth or even pay taxes.