Is China the world's largest creditor?
Abstract. ABSTRACT: China is now the world's leading creditor nation, while the United States is the world's largest debtor.
Since 2017, China has been the world's biggest bilateral lender; its main development banks issued nearly $500bn between 2008 and 2021.
China became the world's largest official creditor as of 2017.
A report published earlier this month by AidData estimates that 80% of the lending made by China in the developing world is to countries in financial distress. The US-based research house estimated that total outstanding debt, excluding interest, is at least $1.1 trillion.
Debt as a share of GDP has risen to about the same level as in the United States, while in dollar terms China's total debt ($47.5 trillion) is still markedly below that of the United States (close to $70 trillion). As for non-financial corporate debt, China's 28 percent share is the largest in the world.
As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
U.S. debt offers the safest haven for Chinese forex reserves, which effectively means that China offers loans to the U.S. so that the U.S. can keep buying the goods China produces.
Though China owns a large amount of U.S. debt, it isn't the United States's largest creditor. The greatest amount of U.S. debt is owned by the U.S. government, while the largest foreign creditor is Japan. China owns around 2.6% of U.S. debt, which it buys because the Chinese yuan is pegged to the dollar.
[2] A report by the credit rating agency S&P Global in 2022 estimated that 79 per cent of corporate debt in China was owed by SOEs (the IMF does not break down the proportion of debt owed by SOEs).
How much is Apple in debt?
Total debt on the balance sheet as of December 2023 : $108.04 B. According to Apple's latest financial reports the company's total debt is $108.04 B. A company's total debt is the sum of all current and non-current debts.
Dave Ramsey is the founder and CEO of the company Ramsey Solutions, where he's helped people take control of their money and their lives since 1992. He's also an eight-time national bestselling author, personal finance expert and host of The Ramsey Show.
India takes the top spot. Its $39.7bn debt towards the WB recorded at the end of 2021 is double that of the next biggest debtor, Indonesia, with $19.6bn. Pakistan and Bangladesh follow with $18.3bn and $17.8bn, respectively, according to WB figures.
Holders of U.S. Debt
Were China to suddenly unload its reserve holdings, its currency's exchange rate would rise, making Chinese exports more expensive in foreign markets. As such, China's holdings of American debt do not provide China with undue economic influence over the United States.
Selling Treasurys is a fast way to whip up U.S. dollars, and China will sometimes use extra dollars to go out on the global market and buy up their own currency. That artificially pumps up its value. It's like planting someone at an auction to drive up your prices.
What would happen if China stopped buying US debt? Very little. China holds only about five percent of the US public debt, and roughly the same amount that Japan holds. The largest creditor of the US government is actually the Social Security Administration—in effect, the government itself.
China owes the United States $1.3 trillion, which is the most debt out of all the countries that are its debtors. Japan was the primary debt holder until 2008, but now comes in second place, with $1.2 trillion. Other countries with outstanding U.S. debt include Russia, India and South Korea.
The major international owners of US debt include Japan ($1.1T), China, UK, Belgium, Switzerland, Cayman Islands and smaller amounts from the rest of the world. After the recent weak treasury auction, US government officials warned that they are seeing waning demand from international buyers.
Foreign holders of United States treasury debt
Of the total 7.6 trillion held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 868.9 billion U.S. dollars in U.S. securities.
China owns 384,000 acres of American agricultural land. That's a 30% increase just since 2019. And on top of that, they own land near an air force base in North Dakota.
Why China has a giant pile of debt?
Cities and provinces across the country have accumulated a massive amount of hidden debt following years of unchecked borrowing and spending. The International Monetary Fund and Wall Street banks estimate that the total outstanding off-balance-sheet government debt is around $7 trillion to $11 trillion.
The researchers also cited data reported by lenders to the Switzerland-headquartered Bank of International Settlements, which they said indicates developing country borrowers owe Chinese lenders at least $1.1 trillion and up to $1.5 trillion as of 2021.
Country | Economy |
---|---|
United States | $25.347 trillion |
China | $19.91 trillion |
Japan | $5.396 trillion |
Germany | $4.55 trillion |
Russia National Government Debt reached 287.8 USD bn in Jan 2024, compared with 285.4 USD bn in the previous month.
Country | National Debt (Million USD) | Data Year |
---|---|---|
United States | $30.89 Mn | 2022 |
China | $13.77 Mn | 2022 |
Japan | $12.78 Mn | 2021 |
United Kingdom | $3.14 Mn | 2022 |
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