China finance ministry stated that local government debt is manageable and financial resources are sufficient to prevent risk spread, seeking to ease investor concerns regarding possible defaults. Although the total government debt is estimated to be about 156 tln yuan (USD 22 tln), equivalent to 126% of GDP in 2022, the government emphasized that the general financial health is sound. However, half of China’s cities are reportedly struggling with interest payments on their debt, with several regions admitting that handling the debt problem independently is challenging.