Part 3/18:
Local governments, strained by years of pandemic lockdowns and declining revenues, are nearing insolvency. A provincial finance official from one of China's top revenue-generating regions candidly admitted that after three years of economic hardship, reserves are depleted. Public services, salaries, and essential infrastructure projects are being frozen or abruptly terminated. The consequence is a crumbling social fabric, as government workers face salary cuts and bonus eliminations—some experiencing reductions of up to 25%.