Chinese-Dragon
RETIRED TTA
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So the question is: Can China be the next Greece? You might want to put aside your nationalistic passion, put on the objectivity hat, and read the article more carefully. Pay extra attention to the debt issue.
The author already answered that:
All told, Avent estimates China's debt-to-GDP ratio is roughly 80%, which, if coupled with China's expected 5% and 9% over the next few years and fairly conservative spending, would put China back in the black in no time.
That's a lot different than the situation in Greece, where debt levels are equally high, but growth is nowhere in sight and lenders are pulling away.
There's also the fact that, unlike in the U.S. and in Greece, China is toting around some $3 trillion in foreign exchange reserves, which makes it easy to raise money in a flash when times get tough.
Firstly, you can't default on debt payments with $3 trillion in currency reserves.
Secondly, China is still growing at double-digit rates, unlike Greece or even the USA. We won't even need to dip into our currency reserves in the first place.