China Stimulus Measures Boost Debt With Economy

The video discusses China's use of off-balance sheet funding to meet growth targets, highlighting concerns from private sector economists about increasing debt. The state steps in to invest when the private sector withdraws, a move supported by Keynesian economics. However, the rapid debt accumulation poses risks to China's economic development, requiring a careful balance to avoid hindering growth.

In what ways does the private sector's reluctance to spend affect government spending in China?

What balancing act is the Chinese government trying to achieve in managing its debt?