More cash for local governments to pay bills; Weaponizing soybeans; Interference and the “Fengqiao Experience” in the Solomon Islands

Summary of today’s top items:

1. Loans to local governments to pay arrears to enterprises? - Bloomberg reports that “government is considering asking state lenders and policy banks including China Development Bank to lend to local authorities so they can make the payments in arrears”, in a package of at least 1 trillion RMB. That would go a long way toward helping get money to enterprises so they can pay suppliers and staff, and may be seen as a form of stimulus. The readout from the April Politburo meeting specifically called for dealing with the problem of local government arrears to business, so maybe five months on they are finally getting serious?

The meeting pointed out that efforts must continue to prevent and defuse risks in key areas. The package of debt resolution policies for local governments should continue to be implemented, and the issue of arrears owed by local governments to enterprises should be addressed more swiftly.

会议指出，要持续用力防范化解重点领域风险。继续实施地方政府一揽子化债政策，加快解决地方政府拖欠企业账…