China's parliament standing committee has reviewed a proposal to increase the local government debt limit. The new debt would primarily be used to replace hidden debt, which has become a significant concern due to declining revenue from land sales.

Estimates suggest that China is grappling with a substantial amount of outstanding hidden debt. Analysts predict that the government may approve an additional debt quota over the coming years to address this issue. If economic challenges intensify, this figure could rise further.

The National People’s Congress is expected to finalize discussions this week, with the committee anticipated to approve further fiscal support measures aimed at bolstering the country's slowing economy.