Yes, China borrows money, both domestically and internationally, but it's also a massive global lender, with significant national debt from large infrastructure projects, local government borrowing (often off-budget), state-owned enterprises, and household loans, making it a complex picture of high debt and significant overseas lending. China's debt levels, including local government financing vehicles (LGFVs) and corporate debt, are substantial, exceeding 300% of GDP when all off-budget obligations are considered, while it simultaneously lends heavily to developing nations through initiatives like the Belt and Road Initiative (BRI).
Large-scale infrastructure construction in China has been debt-financed through the use of local government financing vehicles (LGFVs) that borrow from banks and issue corporate bonds known as "urban construction and investment bonds" or "chengtou" bonds.
"FDI lending accounts for more than three quarters (77 per cent) of China's official sector lending portfolio in Australia," Ms Escobar said. "[Australia] has received Chinese FDI loans worth more than $US100 billion, as compared to the US, which has received less than $US75 billion."
State-owned enterprises accounted for over 60% of China's market capitalization in 2019 and generated 40% of China's GDP of US$15.98 trillion dollars (101.36 trillion yuan) in 2020, with domestic and foreign private businesses and investment accounting for the remaining 60%.
America owes China about $1 trillion dollars. Until we balance the US budget and pay down our debt, China's ownership of 7 percent of the national debt will continue to give it a vested interest in America's prosperity, not leverage to do us harm.
The United States has the most national debt in absolute dollar terms, exceeding $38 trillion, followed by China and Japan, but Japan has the highest debt relative to its economy (debt-to-GDP ratio) at over 200%, indicating a much larger burden on its economic output. Other countries with high debt-to-GDP ratios include Sudan, Singapore, and Venezuela, but the U.S. holds the largest total figure, impacting global debt.
From a national perspective, China buys U.S. debt due to its complex financial system. The central bank must purchases U.S. Treasuries and other foreign assets to keep cash inflows from causing inflation. In the case of China, this phenomenon is unusual.
Yes, approximately 90% of people in China own their homes, making it one of the highest homeownership rates globally, a result of significant housing reforms starting in 1998 that privatized public housing, alongside strong cultural emphasis on owning property as a marker of stability and a prerequisite for marriage, though it's important to note ownership is of the building, not the land, which remains state-owned. Urban rates hover around 87%, while rural rates are over 95%, with many families owning multiple properties.
China has surpassed the United States as the world's wealthiest country, owing to its nearly one-third share of global net wealth over the last two decades.
Australian Government debt is owned by a range of Australian and international investors. The AOFM provides information on the share of AGS on issue owned by non-residents.
Australia has a GDP of $1.76T compared to $2.17T for Russia, ranking 14/197 and 11/197 by economy size, respectively. Australia has $875B in government debt (50.5% of GDP), compared to $441B (22.5% of GDP) in Russia.
Wealth among the wealthiest growing 'much faster'
According to 2024 statistics from the Australian Council of Social Service (ACOSS) and UNSW, the wealthiest 10 per cent of households in Australia own 44 per cent of all wealth, with an average of $5.2 million per household.
The largest recipient of funds in the BRI programme, Russia is by far the biggest borrower from China, racking up a total debt of $169.3 billion (£134bn) over the last 20 years.
About two-thirds of the national debt is held either by the government itself or by U.S. citizens.
Debt Free Countries: Top Nations without National Debt
The best example can be taken from Hong Kong (it is a one of the debt free countries), whose economy has the least debt to GDP ratio. It is an almost debt free country. It has a well-regulated financial system and large foreign reserves.
China's "0.1% rule" refers to its October 2025 export controls, requiring licenses for foreign products containing ≥0.1% by value of certain Chinese-origin rare earths or made with controlled Chinese rare earth tech, extending China's jurisdiction extraterritorially to high-tech supply chains like EV magnets and AI chips, impacting global industries by giving Beijing leverage over critical materials. This "de minimis" rule creates significant compliance burdens for foreign firms, potentially halting supply of advanced tech.
Five US dollars (around 35 Chinese Yuan) isn't a lot in China for tourists but is a meaningful amount for daily necessities, buying several street food meals or bus rides, though it won't go far in big cities for luxuries, varying greatly by location and type of purchase.
A society where problems are hidden rather than solved can appear “orderly,” but that order is often achieved through coercion and silence, not care and dignity. Homelessness exists, but it is made largely invisible through a mix of short-term containment, forced removal, and strict control over reporting.
With the exception of individuals with hunting permits and some ethnic minorities, civilian firearm ownership is restricted to non-individual entities. Law enforcement, military, paramilitary, and security personnel are allowed to use firearms. Police are to use issued pistols only to stop serious or dangerous crimes.
According to the China Real Estate Index System (CREIS), as of October 2025, the average price of newly built residential properties across 100 monitored cities stood at RMB 16,973 (USD 2,389) per square meter, while second-hand homes averaged RMB 13,268 (USD 1,867) per square meter.
If China attempted to sell all of their bonds rapidly to disrupt the market, the Federal Reserve would step in and purchase ALL of them, or provide unlimited liquidity for US banks to do it. China would lose a vast amount of wealth, it would be a catastrophic mistake.
Eliminating the U.S. government's debt is a Herculean task that could take decades. In addition to obvious steps, such as hiking taxes and slashing spending, the government could take a number of other approaches, some of them unorthodox and even controversial.
Changes in Top Countries' Government Debt in 2025
While the U.S. has just over double the value of China's government debt, the annual increase in both countries' government debt in 2025 wasn't quite as significant. Government debt in the U.S. grew by $2.9 trillion in 2025, while China's grew by $2.2 trillion.