China’s Great Wall Of Debt

[Battle of Bach Dang River]

China’s Great Wall Of Debt
China’s debt has surged in recent years. Can it handle it?

By Anthony Fensom
March 04, 2015

China’s great leap forward economically has now led the communist nation to join its developed rivals in the major debtors club. With growth slowing, is the world’s second-biggest economy heading for a crash?

According to a new report by the McKinsey Global Institute (MGI), China’s debt has quadrupled from $7 trillion in 2007 to $28 trillion as of mid-2014, reaching 282 percent of gross domestic product (GDP) and higher than the level of the United States. Continuing its current pace of growth would see China’s debt reach 400 percent of GDP by 2018, the equivalent of Spain.

Commenting on China’s debt explosion, the report said: “Several factors are worrisome: half of loans are linked directly or indirectly to China’s real estate market, unregulated shadow banking accounts for nearly half of new lending, and the debt of many local governments is likely unsustainable.”
China’s Great Wall Of Debt | The Diplomat

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I know the US is a big debtor, but I am quite surprised to know China is in the same club...

 

[Beast]

I know the US is a big debtor, but I am quite surprised to know China is in the same club...

Becos this is a bogus news. The diplomat is well know to trash talk on China stuff. Why you didn't bother to pick some better news from economist or Forbes?

How did it derived of 7 Trillions China debt?

 

[India defense]

28 trillion looks unreal

 

[AZADPAKISTAN2009]

After world war 3 , all debt becomes 0

 

[Battle of Bach Dang River]

Becos this is a bogus news. The diplomat is well know to trash talk on China stuff. Why you didn't bother to pick some better news from economist or Forbes?

How did it derived of 7 Trillions China debt?

28 trillion looks unreal

It was reported by MGI, not the diplomat.
Perhaps that includes government debt, local government debt, corporate debt.....

 

[TheTruth]

It was reported by MGI, not the diplomat.
Perhaps that includes government debt, local government debt, corporate debt.....

LOL yes and they're comparing that to US gov't debt alone

 

[atatwolf]

The writing is on the wall.

 

[Aepsilons]

According to a new report by the McKinsey Global Institute (MGI), China’s debt has quadrupled from $7 trillion in 2007 to $28 trillion as of mid-2014, reaching 282 percent of gross domestic product (GDP) and higher than the level of the United States. Continuing its current pace of growth would see China’s debt reach 400 percent of GDP by 2018, the equivalent of Spain.

I'll have to review this data.

China’s Great Wall Of Debt
China’s debt has surged in recent years. Can it handle it?

By Anthony Fensom
March 04, 2015

China’s great leap forward economically has now led the communist nation to join its developed rivals in the major debtors club. With growth slowing, is the world’s second-biggest economy heading for a crash?

According to a new report by the McKinsey Global Institute (MGI), China’s debt has quadrupled from $7 trillion in 2007 to $28 trillion as of mid-2014, reaching 282 percent of gross domestic product (GDP) and higher than the level of the United States. Continuing its current pace of growth would see China’s debt reach 400 percent of GDP by 2018, the equivalent of Spain.

Commenting on China’s debt explosion, the report said: “Several factors are worrisome: half of loans are linked directly or indirectly to China’s real estate market, unregulated shadow banking accounts for nearly half of new lending, and the debt of many local governments is likely unsustainable.”
China’s Great Wall Of Debt | The Diplomat

------------
I know the US is a big debtor, but I am quite surprised to know China is in the same club...

Hi @Battle of Bach Dang River ,

That number being posted is excessive . Officially, China's debt is no more than $6 Trillion (US Dollars).

It was reported by MGI, not the diplomat.
Perhaps that includes government debt, local government debt, corporate debt.....

You have to understand Chinese fiscal mentality, my friend. Chinese people, overall, are not the type to use credit, they prefer , if possible, to pay in cash, or pay through debit cards rather than charge on credit, where one is charged interests.

Chinese Psychology in regards to purchasing items always is afixed on the saying, "if you cannot buy it through cash , better not buy it at all. If you have to go in debt to get something, best not to get it. Save. Save until you can buy whatever it is that you want."

 

[TheTruth]

The writing is on the wall.

Who says someone with double digit IQ can read such writing? You're a third world country growing at 4.1%. You have less per capita wealth than the PRC. Chinese Singapore has a growth rate over 4% despite having nearly 5x your GDP/capita.

 

[Aepsilons]

Who says someone with double digit IQ can read such writing? You're a third world country growing at 4.1%. You have less per capita wealth than the PRC. Chinese Singapore has a growth rate over 4% despite having nearly 5x your GDP/capita.

Turkey is not a third world country.

Economy of Turkey - Wikipedia, the free encyclopedia

 

[TheTruth]

Turkey is not a third world country.

Economy of Turkey - Wikipedia, the free encyclopedia

Compared to Taiwan, it's a poor dirty shithole. Also a financial and technological midget.

 

[atatwolf]

Who says someone with double digit IQ can read such writing? You're a third world country growing at 4.1%. You have less per capita wealth than the PRC. Chinese Singapore has a growth rate over 4% despite having nearly 5x your GDP/capita.

Are you seriously comparing European economies to the bubble gum paper tiger export economy of China? Most of the people can't even afford what you are producing and the production is soon moving out of China. Good luck munk!

 

[Viet]

Becos this is a bogus news. The diplomat is well know to trash talk on China stuff. Why you didn't bother to pick some better news from economist or Forbes?

How did it derived of 7 Trillions China debt?

die welt, one of the most creditable german newspapers today brings a report about chinese debts: from $2.1 trillions in 2000 to $28.2b trillions in 2014. but I think like the US, it should not be a problem as you can print the money to pay the debts.
Schuldenberg bringt Chinas Wirtschaft in Bedrängnis - DIE WELT

 

[TheTruth]

Are you seriously comparing European economies to the bubble gum paper tiger export economy of China? Most of the people can't even afford what you are producing and the production is soon moving out of China. Good luck munk!

You're not European, you're a third world shithole all in your own class. Started modernizing in 1800s, yet you're broke. You will never be as rich as Taiwan, Hong Kong, Macau, Singapore. Together our population of 32 million is something like 4-5x richer than you.

National wealth - Wikipedia, the free encyclopedia

Quick economics lesson since you're not too bright, try figuring out China's net exports and then account for where the profits on each end are going.

Wow, I really feel like I've lowered myself even addressing you low order of vermin. You make NiceGuy look like a genius.

 

[Aepsilons]

Compared to Taiwan, it's a poor dirty shithole. Also a financial and technological midget.

Compared to mainland China, it is more developed in various parameters. Turkey is a developing country, and doing very well for the region she is in. So, please, be more objective in analysis than being rapacious.