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Google Query AI
Yes, China has significant debt, with total non-financial debt exceeding 300% of its GDP, driven by massive borrowing for infrastructure and growth, especially through local government financing vehicles (LGFVs) and state-owned enterprises, leading to concerns about hidden local government debt and rising corporate leverage. While the central government's debt-to-GDP ratio (around 88% in 2024) is lower, the combined debt of local governments, corporations, and state banks creates a substantial financial burden, with projections showing continued growth.
