How Fiscal Risk May Constrain China's Geopolitical Ambitions

Abstract

China's spending on national defense, internal security, and interest on outstanding debt currently account for over half of all central government expenditures. This has led to reduced outlays for nearly all other central government agencies as China's leaders have endeavored to restrain debt service while steadily increasing national defense spending. Growing reliance on debt to finance government spending has also exacerbated stresses on Chinas financial system. Fiscal pressure will inevitably inform and probably constrain China's domestic and foreign policy in terms both of goals and of implementation.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 2023
Accession Number
AD1230847

Entities

People

  • Christopher F. Wurzel

Organizations

  • Institute for Defense Analyses

Tags

Readers

  • Public Financial Management and Budgeting
  • Strategic Security Studies