Chinese tax authorities pursue unpaid taxes to address debt crisis and cover budget shortfalls.

Chinese tax authorities are pursuing unpaid taxes from companies and individuals dating back decades to address a growing debt crisis and cover budget shortfalls. Local governments face significant financial pressures, with the central government controlling most tax revenue allocated to local governments that cover 80% of expenditures. The arbitrary way taxes are collected, with periods of leniency followed by sudden crackdowns, is counterproductive, discouraging companies from investing or hiring. The State Taxation Administration denies launching a nationwide crackdown.