The total debt of firms and regional authorities in China has exceeded 250% of GDP, which complicates the task of the authorities , which attempt to ensure sustainable economic growth and at the same time to prevent the development of the financial crisis, reports the Financial Times.
Concern of the experts causes not so much the total amount of the debt, but the fast expansion.
According to Bank Standard Chartered, at the end of 2008. Chinese debt was about 147 percent of GDP, and jump to 251%, only confirms previous concerns that high levels of debt in terms of the economic slowdown lead to inefficient use of capital.
Proof of that is towns that were built, but unoccupied, and also excess capacity in the industry.