China’s Ticking Time Bomb of Debt

[Dai Toruko]

China's a ticking time bomb of debt and if it doesn't deal with it responsibly, it could soon explode. In this episode of China Uncensored, we look at Xi Jinping's push to redistribute wealth, the relationship between the central government and local governments, and we answer a question from a fan on Patreon about foreign companies pulling out of China due to the CCP's covid policies.

 

[FairAndUnbiased]

madly posting about China doesn't reduce Turkey's debt, it only increases it due to nonproductive use of electricity.

BTW if Chinese debt is so bad, how come institutional investors rate China as one of the safest investments to lend money to?

List of countries by credit rating - Wikipedia

en.wikipedia.org

Bonds rated BB+ and below are considered to be speculative grade, sometimes also referred to as "junk" bonds

China

A+

Stable

Turkey

BB-

Negative

 

[beijingwalker]

LOl, the western media on one hand claimes China owes too much debt, on the another hand cries that the world and US owe too much debt to China and China set up debt traps around the world. China, you are damned if you do and damned if you don't.

 

[casual]

China's a ticking time bomb of debt and if it doesn't deal with it responsibly, it could soon explode. In this episode of China Uncensored, we look at Xi Jinping's push to redistribute wealth, the relationship between the central government and local governments, and we answer a question from a fan on Patreon about foreign companies pulling out of China due to the CCP's covid policies.

this youtube channel comes out with a video on the imminent collapse of china every week for 9 years now.

 

[KampfAlwin]

madly posting about China doesn't reduce Turkey's debt, it only increases it due to nonproductive use of electricity.

BTW if Chinese debt is so bad, how come institutional investors rate China as one of the safest investments to lend money to?

List of countries by credit rating - Wikipedia

en.wikipedia.org

China

A+

Stable

Turkey

BB-

Negative

I’ve noticed this user started to spam China articles since last week. Maybe dude has some liras to earn.

 

[Globenim]

Well its the exact same braindead U.S. state affiliated fakenews network collaborating with the U.S. far right racist extremists as for the last decades, hiding behind yet another name and just repeating the same braindead script to keep the U.S. audience brainwashed and catch people increasingly losing trust in U.S. mainstream media feeding them constant lies by feeding them the same garbage from "alternative" sources.

China Information
China Insights
China in Focus
China Observer
China Uncensored and all their branches
China Watch
Decode China
Epoch Times and all their branches
Insights Media and all their branches
New Tang Dynasty Television and all their branches
Taiwan Observer
Vision Times and all their branches
and so on

Same offices, same people, same funding, same fakenews.

I’ve noticed this user started to spam China articles since last week. Maybe dude has some liras to earn.

And most threads are straightout low quality clickbait and propaganda videos with no discussion value or no newsworthyness, sometimes even very old content, with zero commentary from him.

 

[EternalMortal]

Domestic debt doesn't really matter. It's external that countries have to worry about but even there China is doing fine right now.

China has around $2.5 trillion USD external debt. However, it owns around $1 trillion of US gov debt plus additional $3+ trillion USD in reserves. They have more than enough money to cover it.

 

[Beast]

I’ve noticed this user started to spam China articles since last week. Maybe dude has some liras to earn.

Big jealousy play a big part for his action.

 

[ChineseTiger1986]

madly posting about China doesn't reduce Turkey's debt, it only increases it due to nonproductive use of electricity.

BTW if Chinese debt is so bad, how come institutional investors rate China as one of the safest investments to lend money to?

List of countries by credit rating - Wikipedia

en.wikipedia.org

China

A+

Stable

Turkey

BB-

Negative

All these rating agencies are pure propaganda.

The US doesn't deserve to be rated higher than China.

However, they will soon become irrelevant once the dollar empire is gone.

 

[Shotgunner51]

It's external that countries have to worry about

Precisely. China is known to be a surplus & creditor nation (in fact world's 3rd largest creditor nation after Japan, Germany), it's not even news for common folks, wonder what kind of illiterate poster will choose this topic for trolling.

Below is the latest balance sheet for external/international sector (the formal term is International Investment Position or IIP) of China as of end 2021Q3, people can see for themselves whether China has any debt problem, or feel free to compare situation with debtor nation like Turkey or the US.

 

[patero]

Domestic debt doesn't really matter. It's external that countries have to worry about but even there China is doing fine right now.

China has around $2.5 trillion USD external debt. However, it owns around $1 trillion of US gov debt plus additional $3+ trillion USD in reserves. They have more than enough money to cover it.

That's an overly simplistic way of looking at it. Look at the situation with Chinese real estate developers and the practice of paying their suppliers with commercial paper. There is now an estimated $1 trillion US dollars in developer issued commercial paper in circulation on secondary markets which are now starting to default. Commercial paper (ie promisary notes or IOUs) issued by real estate developers have no underlying value, it is an off balance sheet solution to the three red lines policy enabling developers to finance new builds essentially by deferring payment to their suppliers for 12 months. The problem is when the commercial paper matures the developers cannot meet their debt obligation and a default occurs. This leaves the holder of the commercial paper out of pocket, hence many suppliers in China are currently reporting big losses.

This kind of money go-round debt fueled property growth is an immediate threat to Chinas economy, with risk of contagion into the broader economy now a reality. Eventually someone needs to pay for that debt, arguing that it's okay because its chinese companies owing money to chinese companies or institutions ignores the dangerous nature of high debt and leveraging model for growth.

 

[Falconless]

China's a ticking time bomb of debt and if it doesn't deal with it responsibly, it could soon explode. In this episode of China Uncensored, we look at Xi Jinping's push to redistribute wealth, the relationship between the central government and local governments, and we answer a question from a fan on Patreon about foreign companies pulling out of China due to the CCP's covid policies.

China uncensored should only be viewed for entertainment, they make mountains out of molehills all the time.

Also they have ties to a cult.