How bad is it?

China’s debt is more than 250 percent of GDP, higher than the United States. It remains lower than Japan, the world’s most indebted leading economy, but some experts say the concern is that China’s debt has surged at the sort of pace that usually leads to a financial bust and economic slump.

Total debt to GDP

The worrying part

However, when government debt is removed from the comparison, you see a very different picture. China’s corporate and household debt has risen sharply and this is where most worries are focused.

Private debt to GDP

Debt as a percentage of GDP (China)

* Also includes non-profit institutions serving households (NPISH).
Source: Bank for International Settlements