How bad is it?

China’s debt is more than 250 percent of GDP, more than that of the United States. It remains lower than that of Japan, the world’s most indebted economy, but some experts say the worry is that China’s debt has been growing at a rate that usually leads to financial meltdown and economic collapse. .

The worrying part

However, when public debt is removed from the comparison, the picture is very different. Chinese corporate and household debt has risen sharply and this is where most of the concerns are concentrated.

Debt as a percentage of GDP (China)