Many provinces in China are facing severe financial challenges due to high debt and falling revenues amid an ongoing economic crisis. Local governments have implemented cost-cutting measures, including salary reductions for officials, while resorting to arbitrary fines to address budget gaps. This has raised concerns for the central government in Beijing, which aims to support the struggling private sector crucial for economic recovery. A recently announced debt restructuring plan seeks to alleviate interest burdens on local governments to reduce unnecessary penalties. However, experts are urging bolder measures as trade relations with the U.S. remain uncertain.