Is China's debt worse than the US? (2024)

Is China's debt worse than the US?

Debt as a share of GDP has risen to about the same level as in the United States, while in dollar terms China's total debt ($47.5 trillion) is still markedly below that of the United States (close to $70 trillion). As for non-financial corporate debt, China's 28 percent share is the largest in the world.

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Is China's national debt higher than the US?

2, shows that the U.S.'s and China's total non-financial public and private debt-to-GDP rates have converged at about 270% of GDP, with the U.S. making up 30% of the global total and China 20%.

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Which country has the highest debt?

At the top is Japan, whose national debt has remained above 100% of its GDP for two decades, reaching 255% in 2023.

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Is China in serious debt?

In the 15 years since, China's debt-to-GDP ratio has doubled to a whopping 280% , opens new tab, with the bulk of liabilities held by local government financial vehicles (LGFVs).

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How much bad debt is in China?

Outstanding bad loans at Chinese banks hit 3.2 trillion yuan at the end of September, up one-third from 2.4 trillion yuan at end-2019, according to the country's banking regulator.

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Why does the US owe China so much money?

U.S. debt offers the safest haven for Chinese forex reserves, which effectively means that China offers loans to the U.S. so that the U.S. can keep buying the goods China produces.

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Does America still owe China money?

China is one of the United States's largest creditors, owning about $859.4 billion in U.S. debt. 1 However, it does not own the most U.S. debt of any foreign country. Nations borrowing from each other may be as old as the concept of money.

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How much does the US owe China?

Japan owns the most at $1.1 trillion, followed by China, with $859 billion, and the United Kingdom at $668 billion. In isolation, this $7.4 trillion amount is a lot, said Scott Morris, a senior fellow at the Center for Global Development.

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Who holds most of China's debt?

But other experts argue the risk of a hard landing is 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.

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What would happen if China called in our debt?

Holders of U.S. Debt

Were China to suddenly unload its reserve holdings, its currency's exchange rate would rise, making Chinese exports more expensive in foreign markets. As such, China's holdings of American debt do not provide China with undue economic influence over the United States.

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Is China in trouble financially?

Some analysts expected the Chinese economy to boom after it lifted the draconian “zero Covid” measures it had adopted to contain the pandemic. Instead, China has underperformed by just about every economic indicator other than official G.D.P., which supposedly grew by 5.2 percent.

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Is China in debt to anyone?

The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.

Is China's debt worse than the US? (2024)
Who does the US owe debt to?

Who owns this debt? The public owes 74 percent of the current federal debt. Intragovernmental debt accounts for 26 percent or $5.9 trillion. The public includes foreign investors and foreign governments.

How much is Russia in debt?

Russia National Government Debt reached 285.4 USD bn in Dec 2023, compared with 286.3 USD bn in the previous month. Russia National Government Debt data is updated monthly, available from May 2009 to Dec 2023. The data reached an all-time high of 384.2 USD bn in Jun 2022 and a record low of 86.1 USD bn in May 2009.

Who owns US debt?

1 Foreign governments hold a large portion of the public debt, while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, pensions funds, insurance companies, and holders of savings bonds.

How can the US owe itself money?

The final third, around $5 trillion, we actually owed to ourselves. It's money that the treasury has borrowed from various government trust funds – Social Security, Medicare, retirement and pension funds, highway and airport accounts, unemployment and deposit insurance, etc.

Does any country owe the US money?

Here's a fun fact: most of the 10 countries that owe the U.S. the most money also own a lot of U.S. debt. But it actually makes a lot of sense once we get past the initial absurdity of it all. China owes the United States $1.3 trillion, which is the most debt out of all the countries that are its debtors.

What US companies are owned by China?

Volvo, Motorola, Smithfield Foods, and AMC are all owned by Chinese companies but I defy you to both claim that you knew this and to point out any indicators on their websites of this. These are examples of Chinese owned companies that look as American as apple pie to the outside world.

Who is the largest holder of the U.S. debt?

  1. Japan. Japan held $1.1 trillion in Treasury securities as of October 2023, beating out China as the largest foreign holder of U.S. debt. ...
  2. China. China gets a lot of attention for holding a big chunk of the U.S. government's debt. ...
  3. The United Kingdom. ...
  4. Luxembourg. ...
  5. Cayman Islands.

How much land does China own in the US map?

China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture. Of that, 195,000 acres, worth almost $2 billion when purchased, are owned by 85 Chinese investors, which could be individuals, companies or the government.

How much is China worth?

List of the World's Richest Countries in 2022: A Quick Look at the Top 10 Wealthiest Countries
CountryEconomy
United States$25.347 trillion
China$19.91 trillion
Japan$5.396 trillion
Germany$4.55 trillion
6 more rows

What happens if China sells U.S. debt?

If China sells their holdings of U.S. Treasury Bonds, the Renminbi will rise and that will lead to financial instability that will lead to a lot of issues such as making their exports more expensive.

Can the US keep printing money?

The US government can keep creating money (see several other answers for the difference between all money and printed currency) as long as they increase the money supply at close to the same rate that total production increases.

When did the US start borrowing money?

The Beginning of U.S. Debt

Paying for the American Revolutionary War (1775 - 1783) was the start of the country's debt. Some of the founding fathers formed a group and borrowed money from France and the Netherlands to pay for the war. To manage the new country's money, the Department of Finance was created in 1781.

Why is every country in debt?

Just about every country has debt: governments take loans to pay for new roads and hospitals, to keep economies ticking over when recessions hit or tax revenues fall. Sometimes they borrow from countries, other times banks, or maybe asset managers—companies like those investing your pension dollars.

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