China’s macro leverage ratio, or total outstanding non-financial debt as a share of its nominal GDP, climbed by over $560 billion to reach 287.8 percent last year, more than twice the roughly 120 percent of its economic rival the U.S. The new data would put China ahead of Japan, previously the world’s most indebted country, whose sovereign debt accounted for about 220 percent of its GDP by the second quarter of 2023.
[Edit typo.]
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Yes and no.
China having problems is likely good from a political perspective, but China having an economic collapse is going to hurt the rest of the world pretty badly too. They’re still the single largest exporter in the world.
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It’s hard to ignore countries that make up 1/6th of the world population. China could lose a billion people and still have a larger population than the US.
I’d argue (as a Canadian) that we shouldn’t be relying so much on the US either… it has some serious social issues it’s refusing to address too.
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