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Opinion
Christopher Balding

China Has a Dangerous Dollar Debt Addiction

With $1.2 trillion needing to be rolled over this year, the threat of a funding crunch is rising.

The risks are stacking up.

The risks are stacking up.

Photographer: SeongJoon Cho/Bloomberg

China’s foreign debt has been rising rapidly, and that’s becoming an increasingly big problem — for the country and, potentially, the world.

Officially, China lists its outstanding external debt at $1.9 trillion. For a $13 trillion economy, that’s not a major amount. But focusing on the headline number significantly understates the underlying risks.