Global Perspectives: China's Complicated Web of Debt

Weekly commentary on international finance and economics including global events and how world issues affect our domestic issues.

China's Complicated Web of Debt Share this story: After returning from the World Economic Forum in Davos, Dave McKay, CEO of RBC, penned some thoughts on 11 key points of discussion at the gathering. One of the major issues he mentioned is the broad issue of China challenging the existing world order. While that is the clear intention, there are a lot of potential obstacles, not the least of which is their huge pile of credit in all parts of the economy. This issue has a lot of colorful descriptions — "a credit crisis with Chinese characteristics" or "a debt iceberg with Titanic credit risks." The fact is, Chinese borrowing grew from 162 percent of GDP in 2008 to 266 percent in 2017. With China as a major driver of global growth, this is worrying in many ways. WATCH THE VIDEO

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