Dual-Appointment System

JCC — pp. 1-18 2026-04-05 Original The Political Economy of Local Government Debt Expansion in China Pan Liu, Jie Mao, Min Dai Abstract Since the 1990s, China has strengthened the Communist Party of China’s leadership over local People’s Congresses through a dual-appointment system, under which Party secretaries also serve as chairpersons of People’s Congresses. This article argues that this system enhances Party influence over legislative decision-making while further reducing institutional constraints, enabling local Party secretaries to pursue career-oriented agendas such as borrowing for infrastructure to boost economic growth. Under a growth-first development paradigm, this arrangement has fueled the rapid expansion of local government debt. Overall, these findings offer a political economy explanation for the dynamics of local government debt in China, and underscore the importance of stronger legal and institutional constraints on the dual-appointment system to mitigate local fiscal risks.