BEIJING (AP) — President Xi Jinping’s surprisingly candid remarks about local officials racking up unsustainable debt are resurfacing as China navigates its economic future, offering a glimpse into the central government’s long-standing concerns about fiscal responsibility.
Excerpts from a 2013 speech delivered at the annual Central Economic Work Conference, recently highlighted, reveal Xi’s blunt criticism of officials prioritizing short-term political gains over long-term financial stability. He warned against “white elephant projects” funded by excessive borrowing.
“Some officials probably didn’t even think about repaying the debt when they raised it. When will it be their turn to pay it?” Xi reportedly said. “By the time the debt matures, these officials will no longer be in the same positions!”
The president’s frustration extended to officials who, after accumulating significant debt, would “tap their bum and walk off and then get promoted all the way up.” The remarks underscore a persistent challenge for Beijing: curbing the tendency of local governments to pursue ambitious infrastructure projects financed by loans they may struggle to repay.
The Central Economic Work Conference, held in Beijing in late December 2025, serves as a key planning session for China’s economic policies. [1] This year’s conference focused on strategies for 2026 and beyond, with Xi Jinping emphasizing the importance of adhering to socialist principles with Chinese characteristics. [1, 3]
These comments, initially made over a decade ago, resonate today as China prepares its 15th Five-Year Plan. [3] The plan is expected to prioritize high-quality development and address financial risks, including local government debt. The emphasis on Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era suggests a continued focus on centralized control and ideological alignment. [3]
The South China Morning Post recently reported on a new guide issued by Xi Jinping regarding the promotion of Communist Party officials. [2] While details remain limited, the move suggests a continued effort to reinforce party discipline and accountability. [2]
The resurfacing of Xi’s 2013 speech serves as a reminder of the ongoing tension between economic growth and financial prudence within China’s political system. It highlights the central government’s determination to hold local officials accountable for their financial decisions and prevent the accumulation of unsustainable debt.