A Study of China’s Total Debt
Debt is a natural component of the macroeconomy, but its sound development cannot be achieved without proper debt leverage. In fact, the macroeconomy may be jeopardized when the total debt volume becomes too large. The current total debt of China is nearly twice its GDP, and non-governmental debt accounts for more than 80% of the total. Furthermore, during the last 5 years, the dependence of China’s economic growth on debt has nearly doubled. All these factors imply that it’s critical and urgent to study the size and scale of China’s debt.