China’s Debt Crisis

Abstract

By 2015 the size of Chinas total debt, held by government, financial institutions, and non-financial corporates, had reached a level seen as a national burden and an international concern. The explosive growth of this debt is a relatively recent phenomenon going back to the government stimulus in 2008. In order to evaluate the nature of this growth in credit, it is necessary to look at historic events, outside influences, actions by local government entities, and policies undertaken by central government in Beijing