China's economy under pressure from rising debt
www.newsweek.com
As China's economic engine cools, the country's national debt is set to balloon to triple the size of its economy by the end of the year, economists warn.

Cross-posted from: https://feddit.de/post/8451296

China’s macro leverage ratio, or total outstanding non-financial debt as a share of its nominal GDP, climbed by over $560 billion to reach 287.8 percent last year, more than twice the roughly 120 percent of its economic rival the U.S. The new data would put China ahead of Japan, previously the world’s most indebted country, whose sovereign debt accounted for about 220 percent of its GDP by the second quarter of 2023.

[Edit typo.]

  • @RedditWanderer
    1•9 months ago

    Sure but wasn’t this always China’s plan? Make itself the worlds supplier of good while accumulating an outrageous amount of foreign debt which they never intend to pay back. It won’t matter in the end because they’ll have all the means of production.

    At least that’s what I recall the plan was

    • @EldritchEnglish
      1•9 months ago

      That’s assuming a lot of the corporate/fascists don’t stop doing business with them and build infrastructure elsewhere. Which is already happening mind you. So if that was their goal it was short-sighted. Though typical for ml. Even if they keep all the infrastructure. It still has to be maintained and improved upon. And the corporatists will lock arms to exclude them from markets many they once had access to in the end as well.