China's rising debt service costs constrain fiscal stimulus capacity

Financial Times reports that China's growing debt burden, particularly rising interest payments, is limiting the government's fiscal space to implement stimulus measures to revive domestic demand. The report, based on expert analysis, suggests that Beijing's ability to counter economic headwinds is increasingly constrained, though the exact scale of the constraint remains uncertain. This matters because it signals a potential limit to China's growth-support policies, with implications for global growth and risk appetite.