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China's Debt Surge May Increase Risk of Financial Crisis
China already in danger zone for financial crisis, says Bloomberg Economics
A pedestrian walks past Chinese national flags hanging on a street light in Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s debt is poised to soar over the next five years, severely reducing the chances the nation can avoid a financial crisis.
Bloomberg Economics economists Fielding Chen and Tom Orlik estimate China’s total debt will reach 327 percent of gross domestic product by 2022, double the level in 2008. That will put China among the most indebted countries in the world.