Local Government Debt Is China’s Subprime, Ex-Lawmaker Says

Borrowing by thousands of companies set up by China’s local governments to fund construction is the nation’s equivalent of the U.S. subprime mortgage crisis, said Cheng Siwei, a former deputy head of the country’s top legislative body.

http://www.bloomberg.com/news/2011-09-16/local-government-debt-is-china-s-subprime-ex-lawmaker-says-1-.html