China's debt is substantial and complex, with government debt reaching around $16.65 trillion in 2024, or roughly 88.3% of its GDP, though total debt including corporate and household sectors is much higher, exceeding 300% of GDP, with significant concerns about local government and property sector debt. Key figures vary slightly by source and definition, but point to a rapidly rising debt burden, especially local government debt, straining finances despite debt management efforts.
China National Government Debt reached 4,736.4 USD bn in Dec 2024, compared with 4,230.0 USD bn in the previous year. China National Government Debt data is updated yearly, available from Dec 2005 to Dec 2024.
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).
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.
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.
"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."
As the world's biggest gambling hub, Macao SAR has zero debt, bolstered by billions in gaming revenue and healthy financial reserves. Liechtenstein ranks in second, with virtually no debt and the only country in Europe ranking in the top 10.
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.
Russia Government debt accounted for 15.2 % of the country's Nominal GDP in Sep 2025, compared with the ratio of 14.7 % in the previous quarter.
Overall, America ranks 11th globally. As it stands, the current federal budget is projected to add $1.8 trillion each year to the $38 trillion debt pile. While the U.S. debt ratio is 125% today, it will likely only continue to rise.
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.
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.
A real estate crisis in China has dragged on for five years with no end in sight, sapping the strength from one of the economy's pillars. Local governments, strapped for cash because of the property downturn, are not pouring money into infrastructure projects as they did during previous periods of economic malaise.
China isn't a poor country. Using World Bank's income brackets, it's in between high income and upper middle income. China is however developed unevenly, which isn't too surprising given its massive land mass and population.
About two-thirds of the national debt is held either by the government itself or by U.S. citizens.
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.
The United States leads the world GDP ranking with a GDP of $30.50 trillion (IMF WEO Apr 2026).
What is the Country with the Highest Public Debt Level? Japan is the country expected to have the world's highest public debt-to-GDP ratio this year, 242%. This high debt burden is relatively recent: In 1990, the ratio was only around 50% of GDP.
Australia Total Debt accounted for 268.4 % of the country's GDP in 2025, compared with the ratio of 267.6 % in the previous quarter. Australia Total Debt: % of GDP data is updated quarterly, available from Jun 1988 to Sep 2025.
The phrase “Trump IRS forgiveness” is often used to describe speculative or proposed tax relief measures tied to Donald Trump's campaign promises or tax policies during his presidency. However: No legislation has been passed in 2025 to forgive IRS tax debt due to Trump's re-election campaign.
If you're carrying a significant balance, like $20,000 in credit card debt, a rate like that could have even more of a detrimental impact on your finances. The longer the balance goes unpaid, the more the interest charges compound, turning what could have been a manageable debt into a hefty financial burden.
Once the debt limit is reached, the Treasury can't sell any more bonds and other securities to pay off the debt from previous deficits. Put simply: it can't get cash to pay off bills the government has already accumulated. If the U.S. can't pay those bills, then it defaults on the national debt.
The U.S. dollar would depreciate and the yuan would appreciate if China called in all its U.S. holdings, making Chinese goods more expensive.
There is no independent country that is completely debt-free. Having national debt is considered normal in modern economic systems. The country with the highest national debt is Japan. The United States is not a debt-free country.
The U.S. has had debt since its inception. Our records show that debts incurred during the American Revolutionary War amounted to $75,463,476.52 by January 1, 1791. Over the following 45 years, the debt grew. Notably, the public debt actually shrank to zero by January 1835, under President Andrew Jackson.