China Will Tame Its Growing Debt Load in 3 Years, Top Xi Adviser Says
DAVOS, Switzerland — A reclusive and influential senior adviser to President Xi Jinping of China emerged here on Wednesday with a public message
that many in the financial world have been eager to hear: The country has a timetable for curbing its vast appetite for debt.
But his speech was the latest sign that the Chinese government would de-emphasize debt-fueled growth in the coming years
and would instead sharpen its focus on solving thorny economic and social problems, including a surge in borrowing.
He is also widely expected to take charge of a financial stability commission created last summer
that is to have broad powers to oversee domestic economic policy, including fiscal issues and financial regulation
He has met frequently over the years with Treasury secretaries from the United States
and with other foreign officials, always privately and often away from government buildings to make clear that his role was unofficial.
Mr. Liu said Beijing intended to focus on reining in the growth of debt among local governments and companies.
Over the course of about a decade, China has accumulated levels of debt that match those in the United States when compared with the overall economy.
Mr. Liu did not offer details of the government’s plans, or a specific standard by which China could be judged on whether it had achieved its goal.
