Top 10 territories that own the most U.S. debt
In total, other territories hold about $7.4 trillion in U.S. debt. Japan owns the most at $1.1 trillion, followed by China, with $859 billion, and the United Kingdom at $668 billion.
The United States has the world's highest national debt at $31.4 trillion.
But other experts argue the risk of a hard landing is low. China has little overseas debt, and a high national savings rate. In addition, most of the debt is state owned – state-controlled banks loaned funds to state-controlled firms – giving the government the ability to manage the situation.
The United States is the richest country in the world with the highest GDP, as of 2021. China is the second richest country in the world with a $17.734 trillion GDP.
If China called in all of its U.S. holdings, the U.S. dollar would depreciate, whereas the yuan would appreciate, making Chinese goods more expensive.
At the start of 2007, prior to the Global Financial Crisis, Australian Government gross debt was under $52 billion. Between 2007 and March 2020 total Australian Government Securities (AGS) on issue increased to $580 billion, and is $897 billion as of 5 May 2023.
There are countries such as Jersey and Guernsey which have no national debt, so the pay no interest. All this started with the Napoleonic wars when the government borrowed money to fund the war.
Why Does Japan Buy U.S. Debt? Because Japan exports so many goods to the U.S. and other nations, the country frequently develops an account surplus in dollars - the currency the U.S. and other countries give Japan in exchange for their products.
As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
China's $23 trillion local debt mess is about to get worse.
The value of U.S. Treasury securities held by residents of Russia amounted to 67 million U.S. dollars in January 2023, having declined by 89 percent from the previous month. Furthermore, in March 2020, the figure decreased sharply to 3.85 billion U.S. dollars, down from 12.6 billion U.S. dollars one month prior.
A major lender abroad, China is facing a debt bomb at home: trillions of dollars owed by local governments, their financial affiliates, and real estate developers.
United States. The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 128.13%.
According to the latest available data from the World Bank, the United States of America is currently the world's largest economy, with a GDP of over $23 trillion in 2021.
Nearly every year, the government spends more than it collects in taxes and other revenue, resulting in a deficit. (The debt ceiling, set by Congress, caps how much the U.S. can borrow to pay for its remaining bills.) The national debt, now at a historic high, is the buildup of its deficits over time.
The composition of foreign debt by country shows that the most important creditor countries for Australia in terms of total debt are Japan, the United States and the United Kingdom, representing 18, 16 and 9 per cent respectively of gross foreign debt in 1995-96.
An S&P analysis shows Victoria not only has the highest debt burden of any state in the country, it also carries more debt than 10 sub-sovereign states analysed in Canada and Germany – two countries that experts nominate as most similar to Australia.
The IMF data shows that Australia has the lowest level of gross debt, after Chile, when compared with other member states in the Organisation of Economic Development and Co-operation (OECD). In terms of net debt, only Chile, Denmark, New Zealand, Norway and Sweden have lower levels.
China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture.
High inflation in the U.S. would have adverse effects on China, as the real repayment value to China would be reduced in the case of high inflation in the U.S. Willingly or unwillingly, China will have to continue to purchase U.S. debt to ensure price competitiveness for its exports at the international level.
China and Japan are the largest foreign investors in American government debt. Together they own $2 trillion — more than a quarter — of the $7.6 trillion in US Treasury securities held by foreign countries.