Rebalancing Act: China’s Fiscal Reform Challenge

Issue & Policy Briefs April 17, 2014, No. 151

This policy brief examines China’s inter-connected economic challenges of structural and fiscal reform, arguing that promotion of domestic consumption away from fixed-asset investment could further exacerbate the fiscal mismatch between the central and local levels of government—with increasing local government indebtedness and potential for social unrest if not appropriately addressed.