China's Government Debt Reaches 102.5 Trillion Yuan; 11.89 Trillion Yuan in New Bonds Set for 2026

A State Council report on government debt management for 2025 shows that China's total government debt, comprising statutory and hidden debt, exceeded 100 trillion yuan and reached 102.5 trillion yuan at the end of 2025. Official assessment places the country's government debt ratio within a reasonable range. China determines the annual fiscal deficit and new government debt on the basis of economic and social development targets and the overall requirements of national macroeconomic regulation, strengthens whole-chain management of government debt from borrowing and use to repayment, and gives priority to risk prevention and tighter supervision.

In 2026, new government bond issuance will reach 11.89 trillion yuan. This includes 4.4 trillion yuan in new local government special bonds and 1.3 trillion yuan in ultra-long special treasury bonds, which will continue to support the construction of major national projects and the program to upgrade large-scale equipment and consumer goods. At present, 800 billion yuan in ultra-long special treasury bond funding supports 1,417 major projects in key fields, while 2.4 trillion yuan in special bond funds supports more than 18,000 construction projects.

In recent years, work to defuse local government debt risks has continued, a package of debt resolution policies has been implemented, illegal additions to hidden debt have been firmly curbed, and risks from existing debt have been released in an orderly manner. The lifelong accountability system for local government borrowing and the retroactive investigation mechanism for debt problems have been strictly enforced, and illegal or irregular borrowing and financing have been seriously investigated and punished. Notifications from relevant central departments and audit reports show that some localities still have problems such as newly added hidden debt and inaccurate debt resolution. The Political Bureau meeting held on July 30 called for accelerating the pace of fiscal spending and the use of bond funds, while stressing the need to build a strong safety barrier and implement the package of debt resolution plans.

In specific debt management arrangements, China will continue to give play to the role of government bonds, optimize the scale and structure of government debt, strengthen the management of local government special bonds, improve the management of special bond uses, deepen and solidify preliminary project work, and adhere to the principle that spending must be evaluated for results and ineffective spending must be held accountable. At the same time, it will strengthen control on both the demand and supply sides of debt, improve the long-term mechanism for preventing and defusing local government debt risks, and resolutely curb newly added hidden debt and inaccurate debt resolution. It will also strengthen monitoring and supervision of government debt, bring all government borrowing and financing activities under unified supervision, promote full-caliber and full-coverage debt management, and establish risk early-warning and emergency response mechanisms.