Jilin Joins China’s List of Low-Risk Provinces After Debt Drop

January 27 — As part of China’s efforts to mitigate local government debt risks, northeastern Jilin Province has been removed from an official list of areas identified as high-risk, making it the second region to do so following Inner Mongolia Autonomous Region.

Last year, Jilin’s gross domestic product increased by 5%, and public budget revenues rose by 13.3%, reflecting ongoing fiscal stability and a successful move off the central government’s high-risk debt list, according to a report released by the provincial government.

In 2024, China implemented new policies to strictly monitor new investments in 12 provincial-level regions considered high-risk — including Inner Mongolia, Liaoning, Jilin, Heilongjiang, Guangxi, Chongqing, Guizhou, Yunnan, Gansu, Qinghai, Ningxia, and the municipality of Tianjin — aiming to control the ballooning local debt.

Inner Mongolia was the first to exit the list last August, announcing its removal. Additionally, a finance official from Ningxia Hui Autonomous Region stated last March that the region had met the necessary conditions and had formally applied to the State Council for removal from the list.

Following their removal, restrictions on local investments and financing are expected to ease, which could support regional economic recovery and growth, according to Yuan Haixia, director of the research institute at China Chengxin International Credit Rating.

However, leaving the list might also mean a cut in debt relief assistance and favorable resources, creating both opportunities and risks. This situation underscores the importance of careful evaluation by local governments before applying for removal, as they must ensure they can responsibly handle their own debts, Yuan added.

This year, Jilin plans to sustain a GDP growth rate of 5%, with a 3.7% increase in overall public budget revenues. Industrial output from large-scale enterprises, defined as those with annual revenues of at least CNY20 million (USD2.9 million), is expected to grow by 6%.

Moreover, total retail sales of consumer goods are projected to go up by 5%, and fixed asset investment is anticipated to increase by 3%, according to the government’s work report.