Permanent solutions needed for debt issues

Debt ratios of local governments in China are at a record high and their weakening ability to generate revenue will create a debt crisis if the issue is not addressed, warned experts at Caijing magazine's annual conference in Beijing on Wednesday.

The experts noted that China's overall debt ratio, which is debt divided by GDP, falls within a controllable level despite the performance of local authorities.

The conference participants agreed local government debt risk arose from structural and institutional problems.