China’s Overwhelming Debt Burden Points To Still Deeper Problems (2024)

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China’s Overwhelming Debt Burden Points To Still Deeper Problems (2024)

FAQs

Does China's overwhelming debt burden points to still deeper problems? ›

China's debt overhang far exceeds the burdens facing the United States. As recently as 2020, total debt in the United States relative to GDP exceeded China's. But as of mid-2022, China's relative debt burden stood 40 percent higher than America's.

What is the debt burden of China? ›

International Monetary Fund data show China's explicit local government debt nearly doubled over five years to the equivalent of $5.14 trillion — or 35.34 trillion yuan — last year.

Does China have a debt problem? ›

The region's lgfvs have already experienced more than 20 defaults on trust loans and other hidden debts since the start of 2022, many more than in other provinces. As problems have intensified in recent weeks, economists and investors have warned that the central government has few palatable options.

Does China have more debt than the US? ›

Therefore, China's national debt has surged almost three times that of the United States in the past 12 months. In the third spot, Japan has a national debt of $13.36 trillion, indicating a drop of $1.49 trillion YoY.

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