Debt
From China’s debt policy to global debt diplomacy. Read all the important and latest news on China’s debt from the Table.editorial team.
How much is China’s debt?
The amount of China’s public debt was approximately 66.33 percent of GDP in 2021. There is a lot of speculation about when the debt bubble will burst, which could lead to a financial crisis.
What does debt mean for China’s economy?
China’s growth is built on debt. Local governments are piling up debt to boost the provincial economies. The central government announced in its 14th Five-Year Plan that it would stabilize financial markets and prevent further debt accumulation. The real estate market in particular is regarded as the problem child of the Chinese economy, as demonstrated not least by the case of the Evergrande real estate group. Despite the high level of debt, experts believe that the Chinese government has sufficient instruments at its disposal to cushion a collapse of the economy as a result of a possible financial crisis. Climate change is seen as a far greater threat to China’s prosperity.
How does China use foreign debt?
China is the most important lender to many African countries. Countries use the money from China to develop infrastructure. However, China uses this debt diplomacy to promote its own values and narratives. Economic aid is often followed by political