China’s Local Debt Might Be Way Higher Than We Think
show comments
  • Nick M.

    If true, 30 trillion yuan is currently the equivalent to 4.8 trillion USD, which would give them approximately 65 percent debt to GDP. Nowhere close to Europe’s or our debt problems yet, but that will be a growing concern due to China having to deal with its rising military spending, the theoretically amount of it would have to spend to clean up its environment, and its own long term demographic issues. People are expecting China’s growth to slow down as it is major exporter nation, but its customers are running out of money to spend while dealing with their own debt issues.

    Heck, if they were forced to move to take over DPRK in the wake of a war to prevent RoK or US on their border, that huge economic sucking sound may trigger major long term problems sooner rather than later.

  • dralfredbellows

    Let’s be clear that, guesstimates aside, China runs an international deficit with each of their trading partners so that they can run a surplus with the United States. Internally, they’ll crumble, as communist nations do wherever they’ve existed, but when that crumbling happens, they’ll call the U.S. debt and then we’ll have ourselves a real “international incident.”

© The American Interest LLC 2005-2017 About Us Masthead Submissions Advertise Customer Service
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.