Forget U.S. debt, China’s total borrowing is in ‘a league of its own’—much worse and deteriorating faster, analyst says
China's total debt-to-GDP ratio, excluding the financial sector, has surpassed 300%, doubling since 2010 and significantly outpacing the U.S. and other major economies. This surge is driven by corporate and government borrowing, despite a slowdown in household debt due to the real estate crisis. While China is aware of its debt risks, particularly concerning local government financing vehicles that support industries like AI, it is also pursuing AI independence through semiconductor advancements, potentially diminishing leverage for entities like the U.S. in geopolitical discussions. AI
IMPACT China's substantial debt may fund its AI ambitions, potentially shifting global semiconductor supply chains and geopolitical leverage.