Abstract
This paper analyses China's foreign and domestic debt. Foreign debt poses no threat to China. Although China ranks high in terms of total foreign debt, the relative size of its foreign debt to GDP is small, and all its risk exposures are low. Also, China's foreign exchange reserves are much higher than total foreign debt outstanding. As for its domestic government debt, the figure is large but manageable. There are four major types: explicit fiscal debt which is the result of expansionary fiscal policy, unreported local government debt caused by the 1994 tax reform, state banks' bad loans resulting from fiscal and SOE reforms and which may become the largest fiscal liability, and finally, fiscal subsidies made to social security pension funds. Despite its debts, the Chinese government still has massive assets.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
