Why China’s Growing Debt Load Worries the World -<br />By KEITH BRADSHERMAY 24, 2017<br />Moody’s Investors Service downgraded its rating of China’s sovereign debt one notch on Wednesday,<br />citing concerns over growing debt in the country, which has the world’s second-largest economy.<br />Now it has 70 percent more money sloshing around its economy than the United States does, even though the American economy is bigger.<br />A trade war with the United States could mean fewer dollars coming into China to offset money headed abroad, though<br />President Trump is no longer using the type of language about trade with China that he did on the campaign trail.<br />Goldman Sachs looked last year at how fast debt had accumulated relative to the size of the economy in 55 countries since 1960.<br />It found that by the end of 2015, China was already in the top 2 percent of all credit expansions — and its debt shot up even higher last year.<br />The country’s debt as a percentage of economic output has been growing steeply since the global financial crisis,<br />and is expected to continue rising at least through next year.
