Tuesday , March 28 2023

The biggest challenge for China's economy Analysis: It's more debt than trade war | News Central News | NOWnews Today's News


Central Finance News / NOWnews
Central Finance News / NOWnews

(Zhou Huiying, Beijing, 26 & # 39; the Agency Central News) Although a number of & # 39; Data show that China's economic growth fell further under the impact of Sino-US trade war, trade war.

According to Chinese website of Voice & # 39; America (VOA), Forbes columnist, University & # 39; Long Island, New York and professor & # 39; the economy & # 39; Columbia University Panos Mourdoukoutas indicated in & # 39; it with The Treasury bonds accounted for only gross domestic product 47.6% (GDP), but unofficial figures such as the International Finance Association said that this figure is as high as 300%.

The article said that & # 39; now, the international rating agencies Moody credit & # 39; s and Standard & Poor & # 39; s not consider the scale of Chinese debt unofficial during the process rating, and therefore the credit rating of China and the US the reason is nearby countries such as Japan.

Earlier, other institutions have estimated that the ratio of total debt to China's gross domestic product increasing by & # 39; powerful way, can & # 39; lead to financial crisis. Mudao Ketai said that taking into account the share of China in the world economy, this crisis will not only affect the Chinese economy, but also affect the global economy.

According to the report, due to the different statistics and a large amount of & # 39; shadow credit in China, few people can explain the scale of the debt of China. Lu Sina Finance Media observed before the debt per capita of China was RMB 133,400 (about NT $ 590,000) and its total debt was nearly RMB 200.

According to the Ministry of Finance announced in 2017, the debt per capita of Taiwan is NT $ 239 000.

Ketai Mudao remarked that although the business of Sino-American war itself will not be & # 39; major threat to the Chinese economy, it worsens the debt crisis of China.

He said that the heart of the debt problem of China is "borrowers and lenders are both governments". In China, banks are only government agents.

Under the impact of trade war, the Chinese government decided in & # 39; August & # 39; this year to encourage banks to increase lending, and again & # 39 others, enabled the government local b & # 39; heavily indebted to perform construction and large-scale design to cope with economic growth declining. The revised Chinese financial regulations will allow banks to hold local government bonds almost without restrictions.

According to the Ministry of Finance of China, by the end of & # 39; June & # 39; this year, the debt balance of the local government in China was & # 39; 16 trillion 79.7 billion yuan and said that this scale is controlled within the limits approved by the National Congress of people's China.

However, He Wei, deputy director of the Economic and Financial Committee of the NPC, said in & # 39; meeting in & # 39; May this year: "The local government should not pay debts. He must pay with his debts. He said that I can not pay my wages and I have financial difficulties. X & # 39; I do? "

Wu Xiaoling, former deputy governor of the People's Bank of China (BOC), warned in & # 39; July that the world economy adjustment, geopolitical and industrial restructuring changes will bring the whole world & # 39; uncertainty. "There is not many days & # 39; carnival in the bladder. The preparation for retirement tide is the reality that every country and everyone must face." (Editor: Yang Shengru) 1071126

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