An expert from one of China’s leading state-supported think tanks says China’s mounting debt ratio will not hamper the country’s economic development as it still remains within the “safe zone.”
Li Yang (李扬), a member of the Chinese Academy of Social Sciences (CASS) and chairman of the National Institution for Finance and Development (NIFD) said that while China’s debt is indeed on the rise, it has not yet risen to hazardous levels.
“Both China’s debt-to-GDP ratio and liabilities ratio are within the internationally recognized safe threshold,” Li said.
“China’s economic growth will not be hampered by debt. If there must be a solution to the debt problem, China needs to change between assets and liabilities and focus on working on the asset side.”
Li made the remarks on 25 March at the China Development Forum 2023.