China: Property market is in debt in China because of which the world’s second-largest economy faces a $4 trillion “ticking debt bomb”
China is facing a “dangerous debt bubble” amid the ongoing crisis at the Chinese property giant Evergrande, according to the Indian-based news channel WION. China is said to have racked up $4 trillion worth of debt with WION reporting that the true number may be much higher amid attempts by Xi Jinping’s officials to hide the amount of borrowing needed to fuel China’s massive housing and infrastructure boom.
WION presenter Palki Sharma said: “There is a dangerous debt bubble in China, it is a ticking time bomb that Chinese officials have tried to hide.
“China’s overall debt now stands at well over 270 percent of its GDP, you heard that right, let me repeat the figure 270 percent of China’s GDP that’s debt.
“China’s outstanding foreign debt reach $2.4 trillion in 2020.
“Those are the numbers that we know about what’s making the crisis worse is the hidden debt, the numbers that we don’t know about like the borrowings by local governments no transparency there.