This, but also for central government debt, the government is the issuer of its own currency. As long as the debt is denominated in the same currency, the government can never become insolvent on its debt. The real constraints are always real resources and real economic activity, the lack of which would cause inflationary pressures.

Here's an insightful bit in US context, but it's much the same for China: https://youtu.be/pex89N9Oqog