In many countries, local governments can technically declare bankruptcy, but this is not feasible in China. China’s executive-dominant social structure, in which central power dominates absolutely, would lead to incalculable consequences if a government runs out of money or faces problems. In recent years, we have often seen news about pay cuts or wage arrears for civil servants and teachers, but these are sectors that do not greatly impact social stability. However, if wages for city management and public
