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zbb

zbb

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gelgoog said:
It is funny these people think Chinese debt is an issue. When all the debt is internal and much smaller than in the US or other Western countries. I always laugh when they compare total Chinese debt, state, commercial, and private with just US state debt.
The banks in China are all government owned anyway. The government can just erase the debt with the stroke of a pen whenever they want. This is definitively not the case in either Japan or the US.
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Not to mention the Chinese government owns significant amount of income generating assets such as SOEs and sovereign wealth funds whose total value far exceeds the total value of its debts.
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The assets of State-owned enterprises (SOEs) totaled 371.9 trillion yuan ($52.37 trillion) at the end of 2023, according to a State Council report submitted for deliberation at an ongoing session of the National People's Congress Standing Committee.​
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The assets of financial SOEs stood at 445.1 trillion yuan at the end of last year, and State-owned assets in administrative departments and public institutions came in at 64.2 trillion yuan.​

China's debt situation is similar to that of Singapore. Singapore has one of the highest government debt to gdp ratios of >170% (far higher than that of China) but is also universally considered to be in one of the best financial shapes. We never hear anyone raising the alarm about Singapore's extremely high debt to gdp ratio because Singapore's government owns income generating assets worth many multiples of its debt, but somehow people just totally forgets about government assets when talking about China's much more modest debt.
 
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