Subnational public debt is a problem in both China and Germany—and there are lessons to be drawn from each country for the other. Total public debt amounted to 54% of GDP in China in 2012 and 74% in Germany in 2015 of which subnational governments (provinces, prefecture cities, counties, towns and villages) had a share of 53% in China and respectively 37% Länder and local governments in Germany. Subnational public debt significantly varies across the lower levels of government and among the governments at the same level. […]