FAQs
At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4bn of external debt to China), Angola (22.0bn), Ethiopia (7.4bn), Kenya (7.4bn) and Sri Lanka (7.2bn) held the biggest debts to China.
How many countries are in debt with China? ›
At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4 billion of external debt to China), Angola (22.0 billion), Ethiopia (7.4 billion), Kenya (7.4 billion) and Sri Lanka (7.2 billion) held the biggest debts to China.
Does China have the highest debt? ›
The United States, holding the highest national debt globally, has a total of $31.68 trillion, representing a YoY increase of $1.3 trillion or 4.28%, reaching $30.38 trillion. Therefore, China's national debt has surged almost three times that of the United States in the past 12 months.
Is America in debt to China? ›
China and Japan are the largest foreign investors in American government debt. Together they own $2 trillion — more than a quarter — of the $7.6 trillion in US Treasury securities held by foreign countries.
Is China the largest holder of US debt? ›
However, this has declined over time, and as of 2022 they controlled approximately 25% of foreign-owned debt. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
Which country owes the most debt? ›
According to data published by London-based investment fintech Invezz, Japan, Greece, Italy, Portugal, and the US are the top five nations with the highest level of government debt.
What is the hidden debt of China? ›
Domestic ratings company China Chengxin International Credit Rating estimates the hidden debt of local governments was in a range of 52 trillion yuan to 58 trillion yuan at the end of 2022, about 1.5 to 1.7 times the amount of explicit debt.
Is China in a debt crisis? ›
China's $23 Trillion Local Debt Crisis Threatens Xi's Economy - Bloomberg.
Who does the US owe the most money to? ›
Investors in Japan and China hold significant shares of U.S. public debt. Together, as of September 2022, they accounted for nearly $2 trillion, or about 8 percent of DHBP. While China's holdings of U.S. debt have declined over the past decade, Japan has slightly increased their purchases of U.S. Treasury securities.
Which countries owe China? ›
The Countries That Owe the Most Debt to China
- Congo — 49.7% (Image Credit: Wikimedia Commons)
- Equatorial Guinea — 46.8%
- Djibouti — 40.3% (Image Credit: Wikimedia Commons)
- Maldives — 37.8% (Image Credit: Wikimedia Commons)
- Angola — 34.0% (Image Credit: Wikimedia Commons)
- Suriname — 30.2% ...
- Kyrgyzstan — 29.9% ...
- Samoa — 29.4% ...
China invests heavily in U.S. Treasury bonds to keep its export prices lower. China focuses on export-led growth to help generate jobs. To keep its export prices low, China must keep its currency—the renminbi (RMB)—low compared to the U.S. dollar.
How much debt do we owe to China? ›
Top Foreign Holders of U.S. Debt
Rank | Country | U.S. Treasury Holdings |
---|
1 | 🇯🇵 Japan | $1,076B |
2 | 🇨🇳 China | $867B |
3 | 🇬🇧 United Kingdom | $655B |
4 | 🇧🇪 Belgium | $354B |
6 more rowsMar 24, 2023
Who owes the US money? ›
Many people believe that much of the U.S. national debt is owed to foreign countries like China and Japan, but the truth is that most of it is owed to Social Security and pension funds right here in the U.S. This means that U.S. citizens own most of the national debt.
Could the US ever get out of debt? ›
Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial. Below are some of these options.
Why is U.S. debt so high? ›
Flashpoints that greatly contributed to the debt over the past 50 years include the wars in Iraq and Afghanistan, the 2008 financial crisis and the 2020 COVID-19 pandemic -- the latter two prompting sweeping stimulus measures from Congress that cost trillions of dollars.
What percent of U.S. debt is China? ›
China's Stake
Foreign governments and private investors hold $7.57 trillion of the national debt, according to the government's latest data for March. The figure represents 31 percent of the $24.3 trillion U.S. Treasury market, the U.S. government's primary source of financing.
How much does Russia owe the US? ›
How much does Russia owe? About $40 billion US in foreign bonds, about half of that to foreigners. Before the start of the war, Russia had around $640 billion US in foreign currency and gold reserves, much of which was held overseas and is now frozen.
Does the US have the most debt? ›
The United States has the world's highest national debt at $31.4 trillion. Global debt currently stands at $305 trillion, $45 trillion higher than before the COVID-19 pandemic, according to the Institute of International Finance (IIF) – a global association of the financial industry.
Which country is completely debt free? ›
The best example can be taken from Hong Kong (it is a one of the debt free countries), whose economy has the least debt to GDP ratio. It is an almost debt free country. It has a well-regulated financial system and large foreign reserves.
Who has the biggest debt in the world? ›
- China, People's Republic of. no data.
- France. 91.76.
- Germany. 46.27.
- Italy. 146.55.
- Japan. 221.32.
- United Kingdom. 102.97.
- United States. 115.28.
The 20 countries with the lowest national debt in 2022 in relation to gross domestic product (GDP)
Characteristic | National debt in relation to GDP |
---|
Macao SAR | 0% |
Brunei Darussalam | 2.06% |
Kuwait | 2.92% |
Hong Kong SAR | 4.26% |
9 more rowsMay 11, 2023
How bad is China's debt? ›
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.
Why is China's debt so low? ›
China has little overseas debt, and a high national savings rate. In addition, most of the debt is state owned – state-controlled banks loaned funds to state-controlled firms – giving the government the ability to manage the situation.
How much money does China owe the world? ›
The authors' research, based on a comprehensive new data set, reveals that between 1949 and 2017, the state and its subsidiaries lent about $1.5 trillion to more than 150 countries across the globe — much of which has been hidden from public view.
What countries are defaulting to China? ›
An Associated Press analysis of a dozen countries most indebted to China — including Pakistan, Kenya, Zambia, Laos and Mongolia — found paying back that debt is consuming an ever-greater amount of the tax revenue needed to keep schools open, provide electricity and pay for food and fuel.
How much is America in debt? ›
In this graphic, Julie Peasley shows how many one-dollar bills it would take to stack up to the total U.S. debt of $31.4 trillion.
How Much Is America worth? ›
United States - Federal Government; Net Worth (IMA), Level was -20997153.00000 Mil. of $ in July of 2022, according to the United States Federal Reserve.
When did the US start going into debt? ›
The U.S. has had debt since its inception. Our records show that debts incurred during the American Revolutionary War amounted to $75,463,476.52 by January 1, 1791. Over the following 45 years, the debt grew.
Which two countries does the US owe the most? ›
Foreign holders of United States treasury debt
Of the total 7.4 trillion held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 859.4 billion U.S. dollars in U.S. securities.
What happens if US defaults on debt? ›
So if the U.S. cannot pay its creditors, interest rates on U.S. debt would go up, creating a cascade of higher interest rates. So mortgage rates, credit card rates, car loan rates. All would become more expensive. Finally, there is a real concern about the economy — that a default could spark a recession.
dynamic and g rowing Mexico will be able THE CURRENT DILEMMA Of Mexico's $98 billion foreign debt, nearly $75 billion is owed to commercial banks, with U.S. banks holding about one-third of the IOUs. The rest is owed to other banks worldwide.
How much does Africa owe China? ›
China has become Africa's biggest bilateral lender, holding over $73 billion of Africa's debt in 2020 and almost $9 billion of private debt.
Is Canada borrowing money from China? ›
China still owes Canada $371 million in loans it incurred decades ago, and is not expected to repay them in full until 2045.
What if China dumps U.S. debt? ›
If the China bloc disposes of net foreign assets amounting to more than 20% of GDP by offloading US bloc bonds over 10 years, the IMF finds that the China bloc's domestic interest rates would fall by four basis points.
What does China own in the US? ›
China owns and controls almost 192,000 acres of farmland right here in the United States. To be clear, it's not a huge percentage of our total farm acreage by any stretch. According to the FDA, there are more than 35 million acres of farmland in the U.S. which are owned by foreign investors.
Who caused the US debt? ›
The U.S. debt is the total federal financial obligation owed to the public and intragovernmental departments. The U.S. national debt is so big because Congress continues both deficit spending and tax cuts.
How much does the federal government owe to Social Security? ›
As of December 2022 (estimated), the intragovernmental debt was $6.18 trillion of the $31.4 trillion national debt. Of this $6.18 trillion, $2.7 trillion is an obligation to the Social Security Administration.
How long will it take to pay off the US national debt? ›
To pay back one million dollars, at a rate of one dollar per second, would take you 11.5 days. To pay back one billion dollars, at a rate of one dollar per second, would take you 32 years. To pay back one trillion dollars, at a rate of one dollar per second, would take you 31,688 years.
When was the last time the US was not in debt? ›
When was the last time the U.S. was debt free? January 1835 was the first and only time all of the government's interest-bearing debt was paid off, according to the Treasury Department.
What happens if U.S. hits debt ceiling? ›
But in the case of a debt ceiling breach, all federal spending is affected, including Medicare payments, Social Security checks and veterans benefits. Federal workers would likely still be required to report to work, but may not get paid on time.
The debt limit caps the total amount of allowable outstanding U.S. federal debt. The U.S. hit that limit—$31.4 trillion—on January 19, 2023, but the Department of the Treasury has been undertaking a set of “extraordinary measures” so that the debt limit does not yet bind.
What does the US spend the most money on? ›
Spending Categories
- 19 % Social Security.
- 15 % Health.
- 14 % Income Security.
- 12 % National Defense.
- 12 % Medicare.
- 11 % Education, Training, Employment, and Social Services.
- 8 % Net Interest.
- 4 % Veterans Benefits and Services.
Who does the US owe more money to China or Japan? ›
With $1.1 trillion in Treasury holdings, Japan is the largest foreign holder of U.S. debt. Japan surpassed China as the top holder in 2019 as China shed over $250 billion, or 30% of its holdings in four years. This bond offloading by China is the one way the country can manage the yuan's exchange rate.
How much does the United States owe China? ›
Foreign holders of United States treasury debt
Of the total 7.4 trillion held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 859.4 billion U.S. dollars in U.S. securities.
How does the US owe China so much money? ›
U.S. debt to China comes in the form of U.S. Treasuries, largely due to their safety and stability. Although there are worries about China selling off U.S. debt, which would hamper economic growth, doing so in large amounts poses risks for China as well, making it unlikely to happen.
Who is richer between USA and China? ›
The U.S. makes up 23.93% of the total global economy, says Investopedia. The World Bank Group lists China as the second richest country in the world as of 2021, possessing a GDP of $17.734 trillion along with a GDP per capita of $12,556.3. China makes up 18.45% of the total global economy.
Who owes the United States money? ›
Many people believe that much of the U.S. national debt is owed to foreign countries like China and Japan, but the truth is that most of it is owed to Social Security and pension funds right here in the U.S. This means that U.S. citizens own most of the national debt.
Why is the US in so much debt? ›
Flashpoints that greatly contributed to the debt over the past 50 years include the wars in Iraq and Afghanistan, the 2008 financial crisis and the 2020 COVID-19 pandemic -- the latter two prompting sweeping stimulus measures from Congress that cost trillions of dollars.
Does any country owe the US money? ›
For a long time, the biggest holder of U.S. debt was China. But did you know that in late 2016, Japan overtook China as the biggest foreign holder of U.S. debt? Japan and China are, by far, the two biggest holders of U.S. debt – but the top five is filled with countries that you might not expect.
When did the United States start borrowing money from China? ›
Even so, in April 1938, the Nationalist government of China began to issue U.S.-dollar denominated bonds to finance the war against Japan's brutal invasion. Locked in a pitched battle for survival, the government issued these bonds into 1940.
The 20 countries with the lowest national debt in 2022 in relation to gross domestic product (GDP)
Characteristic | National debt in relation to GDP |
---|
Macao SAR | 0% |
Brunei Darussalam | 2.06% |
Kuwait | 2.92% |
Hong Kong SAR | 4.26% |
9 more rowsMay 11, 2023
Who did Mexico lose land to? ›
Under the terms of the treaty negotiated by Trist, Mexico ceded to the United States Upper California and New Mexico.
How much of the U.S. did Mexico own? ›
This treaty, signed on February 2, 1848, ended the war between the United States and Mexico. By its terms, Mexico ceded 55 percent of its territory, including the present-day states California, Nevada, Utah, New Mexico, most of Arizona and Colorado, and parts of Oklahoma, Kansas, and Wyoming.