Some Numbers to Consider

From the WSJ:

New Chinese government figures show its national debt load remains low compared with other major economies. But including the debts of local governments and many parts of the state-owned banking sector, as many economists say is proper, shows the constraints facing Beijing in the fight against inflation, its top economic priority.

In a report issued during the annual session of the National People’s Congress, China’s legislature, the Ministry of Finance said central government debt at the end of 2010 was $1.03 trillion. That number is equal to about 17% of China’s gross domestic product, far below the levels of the U.S., Japan, and major European countries.

China’s government debt is mostly held domestically. In contrast, about half of the U.S. federal government’s debt is held by China and other foreigners, a source of anxiety among policy makers and the public who fear it makes the U.S. vulnerable to pressure from foreign creditors.

China, meanwhile, sits on foreign-exchange reserves that have grown to $2.85 trillion.

Posted by Eddy Elfenbein on March 8th, 2011 at 9:10 pm

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