External Debt of China: Current State and Prospects
Igor A. Balyuk
Abstract
Igor A. Balyuk
Abstract
The paper focuses on analysis of dynamics, trends and specifics of the modern composition of external debt of China based on studying statistics compiled by the international financial institutions. On the basis of comparative analysis, the place of China in the structure of global external debt has been determined. After examination of the basic indicators of external debt sustainability the author makes a conclusion that at present China is in the area of a relatively low level of external debt risk, however rapidly growing short-term corporate external debt can create serious refinancing problems in the future.
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The paper focuses on analysis of dynamics, trends and specifics of the modern composition of external debt of China based on studying statistics compiled by the international financial institutions. On the basis of comparative analysis, the place of China in the structure of global external debt has been determined. After examination of the basic indicators of external debt sustainability the author makes a conclusion that at present China is in the area of a relatively low level of external debt risk, however rapidly growing short-term corporate external debt can create serious refinancing problems in the future.
Key concepts: External debt, Debt, China, Internal debt, Debt levels and flows, Debt-to-GDP ratio, Sustainability, State (computer science)