May
04
2019
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Why We Should Not Be Afraid By China's Debt?
In China, there is a high level of savings and controls on capital outflows. Currently, most of the Chinese savings are lent or invested in China. So, China’s debt reflects the Chinese savings rate. It would be much more worrying if China’s debt led to external debt, like emerging countries such as India, Turkey, or Argentina. But that’s not the case. So, we should not be afraid by China’s debt at this time.
![Outstanding Domestic Private Debt Securities to GDP for China](https://www.isabelnet.com/wp-content/uploads/2019/05/Outstanding-Domestic-Private-Debt-Securities-to-GDP-for-China.png)
![](https://www.isabelnet.com/wp-content/uploads/2019/05/Outstanding-Domestic-Public-Debt-Securities-to-GDP-for-China.png)
![Projection of General government gross debt for China](https://www.isabelnet.com/wp-content/plugins/wp-fastest-cache-premium/pro/images/blank.gif)