Tianjin Facing Bankruptcy Crisis with Debt Ratio Reaching 500%, Former Officials Blamed
In a comprehensive report by Epoch Times reporter Fang Xiao, it has been revealed that Tianjin is facing a severe economic crisis as its debt ratio reaches a staggering 500%. Following the “autumn shock” in Tianjin last year, news of bankruptcy has once again become widespread, highlighting the municipality’s deteriorating financial situation.
Analysts have pointed out that Li Hongzhong, who served as secretary of Tianjin for six years, bears responsibility for the city’s massive debt accumulation. Despite being a municipality directly under the Central Government, Tianjin’s financial woes continue to escalate, leading to reports of large-scale wage arrears and bankruptcies.
The recent discussion on social media platforms about which province or city will be the next to admit bankruptcy has sparked concerns among netizens. Many have expressed their opinions on the matter, with some blaming the civil service costs as a cancer-like burden on the country’s economy.
In response to the mounting debt crisis, Chen Min’er, a member of the Political Bureau of the Communist Party of China, took over as Secretary of the Tianjin Municipal Committee in late 2022. Chen Min’er has since taken drastic measures to address the city’s financial challenges, including halting supplementary provident funds for civil servants and improving their performance to reduce fiscal expenditures.
The crisis in Tianjin escalated last year with reports of wage arrears in schools, institutions, and civil service sectors. The situation led to widespread protests, with some employees not receiving their salaries for months. Calls for accountability have been directed towards former senior officials, including Li Hongzhong and Zhang Gaoli, who have been accused of contributing to Tianjin’s debt crisis through reckless investments and mismanagement.
It is evident that Tianjin’s bankruptcy is not a sudden occurrence but a result of years of financial mismanagement and irresponsible borrowing. The current leadership under Chen Min’er faces a daunting task to steer the city towards financial stability and restore public confidence in its governance.
As Tianjin grapples with its financial woes, it serves as a stark reminder of the importance of fiscal responsibility and prudent economic policies at all levels of government. The repercussions of unchecked debt accumulation can have far-reaching consequences, impacting not only the current generation but also burdening future generations with insurmountable debts.
In the face of this dire situation, it is essential for Tianjin and other cities across the country to prioritize fiscal discipline, transparency, and accountability in their financial management practices to avoid further economic turmoil and ensure sustainable growth in the long run.