Looming Chinese banking crisis?
52
Deutsche Welle reported that the IMF estimates China's overall debt figure to be about 234% of gross domestic product (GDP) and predicts that it will rise to 300% by 2022. Corporate debt currently stands at around 165% of GDP, and household debt is also spiraling upward at a rapid pace. As a result, China is seen as one of the economies most vulnerable to a banking crisis. The remedy would be to slow down the pace of infrastructure investment, but this would undermine overall growth in the economy – something the Chinese government is unlikely to endorse.