China Tells

China government has one of the world’s best balance sheet compared to most other foreign peers. Such a solid fiscal position can be revealed from China government’s debt level. Since 1996, China government’s domestic debt continues to go up while the portion of foreign debt continues to go down By 2010, the foreign debt only accounts for less than 1% of the GDP. Generally speaking, the more domestic debt that the government holds would not be a problem (Japan has almost 200% of GDP’s worth of domestic debt). On the other hand, the lower the level of the foreign debt, the more stability a government’s credit position would be. At the same time, China government benefits from a record level of national saving rate. The saving rate increased steadily from 1999 to 2010, now stablizing at around 50%. Such a high saving rate benefits the government with a world low interest rate to stimulate the economy by public spending.

中国政府的信用等级和债务情况越发健康。从96年以来，中国政府的外债占国民生产总值比例逐年下降，同时政府债务被越来越多的内债替代。一般来说，政府的外债越少，其金融系统动荡的可能性就越小。同时，政府由于国家全民储蓄率的提高，可以享受到超低的利率，令政府在宏观调控经济的时候有很多选择，游刃有余。