President Xi Jinping visits a workshop of China First Heavy Industries in Qiqihar, Heilongjiang province. Is the Chinese economy overleveraged? A large part of China’s high credit-to-GDP ratio is actually “credit” extended to state-owned enterprises. Such “credit” should be reclassified as Beijing’s fiscal outlays. Photo: Xinhua
Chen Zhao
Opinion

Opinion

Macroscope by Chen Zhao

Deleveraging is the wrong way to fix China’s economy, when it doesn’t even have a debt problem

  • Chen Zhao says Beijing has embraced the mistaken view that China’s economy is overleveraged. A large part of China’s high debt-to-GDP ratio is actually cheap credit given to the state sector. In fact, the private economy is underleveraged

TOP PICKS

President Xi Jinping visits a workshop of China First Heavy Industries in Qiqihar, Heilongjiang province. Is the Chinese economy overleveraged? A large part of China’s high credit-to-GDP ratio is actually “credit” extended to state-owned enterprises. Such “credit” should be reclassified as Beijing’s fiscal outlays. Photo: Xinhua
READ FULL ARTICLE