Everyone agrees that the Chinese economy is slowing down and the World Bank statistics showed GDP growth of 7.4% in 2014 and predicted in August that it will fall to just over 7% this year. If this figure proves to be accurate it is still 3.5 times more than the average GDP growth of many western nations. But what about national debt running last year at 40% of GDP? well it’s the highest recorded by China but its much lower than most EU countries. However whilst China’s national debt remains low, their bank’s remain strong despite higher non-performing loans on the balance sheet, but they still have a total debt to GDP ratio of a whopping 282%. But when compared with the US total debt to GDP, which includes household and corporate debt, at 331.7% it hardly looks critical particularly when its balance of payments is well into positive numbers and has been for more […]