Commentary Beijing has long maintained that government debt risks are overall safe and controllable. According to the official data disclosed by China’s Ministry of Finance, China’s government debt balance stood at about 96.05 trillion yuan (about $14 trillion) at the end of 2025, including roughly 41.23 trillion yuan ($6 trillion) in central government debt and 54.82 trillion yuan ($8 trillion) in local government debt. But the official figures published by the Chinese communist regime tell only part of the story, which covers explicit, legally recognized debt. In reality, both central and local governments carry substantial contingent liabilities—implicit or hidden debt tied to guarantees or potential bailouts. Given the heavy state involvement in China’s economy, the scope and scale of such liabilities are extensive....