Officials face rating on loans

Party moves to change method by downplaying growth of GDP

The ruling party's move to make local government debt a major criterion in the evaluation of government officials demonstrates the central government's deep worry over ballooning local debt and represents its latest efforts to put a lid on excessive borrowing.

In a recent announcement by the Organization Department of the Communist Party of China, the ruling party said it will abandon the "GDP ranking" system among provinces, counties and prefectures, which put considerable pressure on local officials, prompting them to relentlessly pursue large investments at the cost of environmental degradation and debt buildup.