How China Pays off Debt

[TaiShang]

Ever Wonder How China Pays off Debt?

Here's an example: Several years ago the Chinese Government identified broadband as a major asset and announced on.

China Says Broadband Speeds Of 20 Mbps By 2015 Forbes: AUG 18, 2012

Then, last year, the Government announced that online micro-businesses would be a national priority.

http://www.inpraiseofchina.com/wp-content/uploads/2015/09/DEBT_TABLE.jpg

China Debt GDP

Now its media are starting to run positive stories like these:

Creative services provide new career options on China's internet

People offering their time and skills on the internet for a fee is becoming a new way to embark on a new career in China. Whether you need a morning wake-up call, someone to accompany you to a plastic surgery procedure or driving practice, or if you have a stack of garlic that needs peeling, you can find someone on the internet offering their skills or at the very least their time, reports our Chinese-language sister paper Want Daily. An internet user with the handle Zhangxiaohua claims to be able to peel garlic skin very quickly and offers the service at 100 yuan (15.70) a time. One of the most popular services available on Taobao is provided by a model called Chen Xiao, who is available on a per-hour basis to perform tasks like picking up a friend, delivering coffee or buying a train ticket on the customer's behalf. Obscene requests are rejected.An internet user going by the name Nini offers a morning wake-up call and to accompany people going through a heartbreak. More

It coincides with the Government reaching the goal they announced 3 years ago: to have every city with 20Mbps broadband by 2015 – which they have just done.

Watch this tsunami of internet nano-businesses ripple across 1.3 billion inventive people. A nice jolt to the economy and the Gov’t captures some of the increased income generated by those online businesses by a higher volume of online taxes. That tax revenue pays off the entire national broadband installation cost in 5 years.

That’s why the Chinese Government can issue as much debt as it does: before it issues the bond it always creates an offsetting revenue stream that will service that bond. Here's a snapshot of China's debt compared to the rest of the world:

China How China Pays off Debt the old-fashioned way: it doesn't borrow until it can structure the deal as a win-win. These are non-predatory deals. There are no victims, no losers in deals like this.

CHINA DEBT GDP CHART


@cirr , @AndrewJin , @tranquilium , @terranMarine , @Dungeness , @Keel , @Economic superpower , @opruh , @Shotgunner51 ， @Martian2 , @Chinese-Dragon

 

[Dungeness]

Ever Wonder How China Pays off Debt?

Here's an example: Several years ago the Chinese Government identified broadband as a major asset and announced on.

China Says Broadband Speeds Of 20 Mbps By 2015 Forbes: AUG 18, 2012

Then, last year, the Government announced that online micro-businesses would be a national priority.

http://www.inpraiseofchina.com/wp-content/uploads/2015/09/DEBT_TABLE.jpg

China Debt GDP

Now its media are starting to run positive stories like these:

Creative services provide new career options on China's internet

People offering their time and skills on the internet for a fee is becoming a new way to embark on a new career in China. Whether you need a morning wake-up call, someone to accompany you to a plastic surgery procedure or driving practice, or if you have a stack of garlic that needs peeling, you can find someone on the internet offering their skills or at the very least their time, reports our Chinese-language sister paper Want Daily. An internet user with the handle Zhangxiaohua claims to be able to peel garlic skin very quickly and offers the service at 100 yuan (15.70) a time. One of the most popular services available on Taobao is provided by a model called Chen Xiao, who is available on a per-hour basis to perform tasks like picking up a friend, delivering coffee or buying a train ticket on the customer's behalf. Obscene requests are rejected.An internet user going by the name Nini offers a morning wake-up call and to accompany people going through a heartbreak. More

It coincides with the Government reaching the goal they announced 3 years ago: to have every city with 20Mbps broadband by 2015 – which they have just done.

Watch this tsunami of internet nano-businesses ripple across 1.3 billion inventive people. A nice jolt to the economy and the Gov’t captures some of the increased income generated by those online businesses by a higher volume of online taxes. That tax revenue pays off the entire national broadband installation cost in 5 years.

That’s why the Chinese Government can issue as much debt as it does: before it issues the bond it always creates an offsetting revenue stream that will service that bond. Here's a snapshot of China's debt compared to the rest of the world:

China How China Pays off Debt the old-fashioned way: it doesn't borrow until it can structure the deal as a win-win. These are non-predatory deals. There are no victims, no losers in deals like this.

CHINA DEBT GDP CHART


@cirr , @AndrewJin , @tranquilium , @terranMarine , @Dungeness , @Keel , @Economic superpower , @opruh , @Shotgunner51 ， @Martian2 , @Chinese-Dragon

Some of our Indian friends have already had countless sleepless nights worrying about China's debt, and dug through every articles and videos under the sun to prove his unparalleled unmatched loyalty to China. What are you trying to tell him now?

 

[TaiShang]

Some of our Indian friends have already had countless sleepless nights worrying about China's debt, and dug through every articles and videos to prove his unparalleled loyalty to China. What are you trying to tell him now?

That their efforts are noticed, noted down, and will be paid back in due time and manner.

 

[tranquilium]

Something to note, as far as speed is concerned, the national network speed of China is actually quite fast. The problem typically arises when Chinese members try to assess external sites and vice versa. This is because the connection between China and US/EU has a limited capacity, thus creating a bottleneck for visitors from both sides.

 

[cyrusthevirus]

Whats the point of having good internet speed when you are blocked from accessing good websites. China first needs freedom of information.

 

[tranquilium]

Whats the point of having good internet speed when you are blocked from accessing good websites. China first needs freedom of information.

What good sites? I am not aware that my colleagues' access to IEEE Xplore has been blocked.

 

[TaiShang]

What good sites? I am not aware that my colleagues' access to IEEE Xplore has been blocked.

He means Facebook, which is a must for an Indian for innovation.

Sadly, we have our own national champions.

Besides, some 700 million poor Indians are so happy with having Facebook and Twitter and they ask no more.

 

[Rangila]

@TaiShang

China Says Broadband Speeds Of 20 Mbps By 2015 Forbes: AUG 18, 2012

What is the actual speed as of now?

Let the Akamai explain;

Methane discharge?

 

[oproh]

Whats the point of having good internet speed when you are blocked from accessing good websites. China first needs freedom of information.

Are the only good websites in india the foreign ones like facebook, twitter and youtube?

 

[zeronet]

China has super high rate on Corporate debt, but you have to know that most of those corporate debt goes to infra construction, for example, the builder of China HSR alone accounts for US$0.7trillion debt--that is 7% of GDP, for one company--and I think this is the most smart debt that you can borrow. Others include companies M&A (china very active in investment all around the world, most of M&A are on debts). There are bad debts of course, for example those injected into real estate. After all, in a country most vibrantly expanding on all spectrum in business, it is so natural to have high rate of corporate debt. The good side is, this is corporate debt, and usually u need pledge to get loan, otherwise no way u can loan from bank. China has a limited amount of government debt, which is good. What government debt is used for? pension for retired people, social security, all social welfare, education, government and military expenditure...all no immediate repayment and mostly black holes, that's why it is so bad to have huge government debts.

 

[cirr]

Chinese buy their homes with 30-50% down payment.

Chinese governmet owns all the land(read: a giant sign of yuan).

China is known for being one of the nations with highest savings in the world.

Debt? What debt?

 

[Shotgunner51]

China is known for being one of the nations with highest savings in the world.

True. And not just "one of the", is "the" highest savings nation.
Gross domestic savings (current US$) | Data | Table

Chinese governmet owns all the land

True.

Debt? What debt?

Just one of many items on the overall balance sheet, like say assets.

And people seems to forget in terms of Net International Investment Position, China is the 2nd largest creditor in the world, 1st if Greater China (Mainland + HK/TW/MC) combined.

 

[Zhang Fan]

if any country were like china that borrows massive amounts of debts to fund terrible scale of building of infrastrctures,apartments,offices as a way to maintain the GDP growth,they could've also grown 7%~8% a year

 

[Shotgunner51]

if any country were like china that borrows massive amounts of debts to fund terrible scale of building of infrastrctures,apartments,offices as a way to maintain the GDP growth,they could've also grown 7%~8% a year

Yes, "building" the country not just sounds like a good slogan, in China it literally means creating real tangible assets for the country.

Arcadis Global Built Asset Wealth Index 2015

China now has a built asset wealth of US$47.6 trillion, overtaking the USA which comes in second place with a wealth of US$36.8 trillion. Since 2000 China has invested US$33 trillion in its built assets, a total that exceeds all other economies combined. The growth is evidence of China’s unprecedented level of investment in its infrastructure – 9% of GDP – which outpaces global competitors like the USA, which currently invests just 2%.

SOURCE: PENN WORLD TABLES, IMF, WORLD BANK WDI, NATIONAL STATISTICAL AGENCIES, CEBR ANALYSIS
FIGURE 1: STOCK OF BUILT ASSETS, 2014, US$​

Qataris replace Singaporeans as the richest built asset population, with a built asset wealth of US$198,000 per capita compared to US$192,000 in Singapore. With investments in infrastructure, residential and non-residential buildings, Qatar’s built asset wealth will continue to grow at double digital levels for the foreseeable future.

SOURCE: PENN WORLD TABLES, IMF, WORLD BANK WDI, NATIONAL STATISTICAL AGENCIES, CEBR ANALYSIS
FIGURE 2: BUILT ASSETS PER CAPITA, US$​

We see Singapore at world 2nd highest (in per capita), China Hong Kong SAR at 3rd highest, China Mainland being at 24th still has a lot room to invest. Let's continue to build!

 

[Kyle Sun]

Chinese buy their homes with 30-50% down payment.

Chinese governmet owns all the land(read: a giant sign of yuan).

China is known for being one of the nations with highest savings in the world.

Debt? What debt?

The counties who like to borrow money will be robbed brutally by Uncle Sam .