Bertelsmann Stiftung (Hrsg.)

Andreas Kern (Goethe University Frankfurt)

China's "Great Wall" of Debt

Chinese Debts and their Macroeconomic Implications

  • 1. Auflage 2018 (PDF)
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The figures of the Chinese debts are subject to ongoing discussion among economists. The question whether the enormous rise in Chinese corporate and private debt over the past decade will lead to another global financial crisis or will be managed by the Chinese government is one of vital importance to the global economy: If China’s debt management fails, the macroeconomic effects are expected to overshadow the catastrophic effects of the 2008 financial and economic crises by large. This paper looks at available data on Chinese debt and tries to assess its size at the central as well as on the local and corporate level.