The U.S. owes China roughly $750-$860 billion in U.S. Treasury securities, making China a major foreign holder of U.S. debt, though Japan holds more, with China's holdings decreasing over recent years as the U.K. has risen. This debt represents a small fraction (around 2-3%) of the total U.S. national debt, with most held domestically, but it still gives China economic influence.
As of April 2025, the list of foreign countries holding U.S. debt is dominated by just three: Japan, the United Kingdom and China. China was formerly the No. 2 holder of U.S. debt, but as the country has been decreasing its holdings over the past few years, the U.K. has taken over that position.
The U.S. ($38.3T) and China ($18.7T) are the two countries with the most government debt, and together make up just over half of the world's total debt ($110.9T).
About two-thirds of the national debt is held either by the government itself or by U.S. citizens.
We have slower income growth, so we have fewer resources with which to pay our debt. Paul Solman: That is fewer tax revenues, which would mean borrowing even more. Plus, lower growth means less demand from businesses to borrow money for investment, which also tends to lower rates.
The United States has the largest total national debt in absolute dollar terms (over $38 trillion), followed by China and Japan, but Japan has the highest debt when measured as a percentage of its Gross Domestic Product (GDP) (over 230%), indicating a much larger debt burden relative to its economic output.
Generally speaking, they will hold U.S. Treasury securities as a low-risk asset. The biggest effect of a broad scale dump of US Treasuries by China would be that China would actually export fewer goods to the United States. Overall, foreign countries each make up a relatively small proportion of U.S. debt-holders.
Brazil: $54.3 billion (£43bn) total debt
Across South America, Brazil is easily the largest recipient of BRI funding and holds the most total debt to China.
From 1st July, 1932, the repayments were suspended in accordance with the arrangements made at the Lausanne Conference and have not since been resumed.At the end of 1964 the unpaid balance of the United Kingdom's World War II and Post-War debt to the United States of America was $4,222 millions.
Since a sovereign government, by definition, controls its own affairs, it cannot be obliged to pay back its debt. Nonetheless, governments may face severe pressure from lending countries.
Canada has a highly developed mixed economy. As of 2025, it is the ninth-largest in the world, with a nominal GDP of approximately US$2.39 trillion. Its GDP per capita in purchasing power parity (PPP) international dollars is about 27.5% lower than that of the highest-ranking G7 country.
More broadly, the housing bust sits at the center of China's current economic malaise. Since mid-2023, China's nominal GDP growth has fallen below real GDP growth, showing economy-wide deflation driven by weak domestic demand and persistent excess supply.
The national debt (or government debt) of the People's Republic of China is the total amount of money owed by the central government, local governments, government branches and state organizations of China. According to the International Monetary Fund, general government debt amounted to 77% of GDP in 2022.
It reached a peak of $1 trillion in 2021, after which it declined to approximately $800 billion in 2023. Notably, from 2016 onwards, China's overseas lending exceeded the combined official lending of the IMF, World Bank, and 22 Paris Club countries, making China the most important creditor to developing countries.
A sharp rise in income and wealth inequality.
Wealth, however, is significantly more concentrated than income: the top 10% holds approximately 67% of China's wealth compared with 41% for income. The top . 001% owns 5.8% of China's total wealth, which is roughly equivalent to that of the bottom 50%.
China remains the world's largest official creditor, lending approximately $140 billion a year to public sector and private sector borrowers around the globe.
A current account surplus means the same growth in domestic credit is financed from domestic savings. Debt financed by domestic savings is more likely to roll over in bad times, and thus less likely to trigger a crisis. Basically, Chinese households' savings financed the nation's ballooning corporate debt.
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.
The counterintelligence and economic espionage efforts emanating from the government of China and the Chinese Communist Party are a grave threat to the economic well-being and democratic values of the United States. Confronting this threat is the FBI's top counterintelligence priority.
The United States owes its debt to foreign countries, companies, nonprofits, investment funds, and individual investors. If the U.S. just refused to pay its debt—ever—the global financial system would collapse and there would likely be a global depression as well as unpredictable political ramifications.
Australia's government debt is nearing $1 trillion AUD in gross terms, with forecasts placing it just over that mark in late 2025 or early 2026, representing around 32-35% of GDP, which is considered relatively low compared to other developed nations despite rising from previous years. Net debt, which accounts for government assets, is lower (around $880 billion in 2024-25) but also growing as a percentage of GDP.
Some countries with the lowest national debt as a percentage of GDP include: