China Surpasses The U.S. With $14 Trillion In Corporate Debt

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China vs. America - Photo by Wangdora92

Chinese companies borrow more than their American counterparts as the world’s second-largest economy takes center stage in corporate-debt markets.

Borrowers from China had $14.2 trillion in debt at the end of last year, exceeding every other country including the U.S., which had $13.1 trillion in company obligations, according to a report dated June 15 by Standard & Poor’s. Needs of Chinese issuers will increase to $20 trillion through the end of 2018, a third of the $60 trillion in global funding needs.

Borrowings in the Asia-Pacific region will overtake both North America and Europe by 2016 as China and neighboring countries widen their lead as the world’s largest group of corporate borrowers, according to S&P. Bonds (BCOR), as opposed to loans, will also become a more important source of financing, increasing 3.5 percent, or almost $3.1 trillion.

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  • CallmeAdam

    I’m surprised at reading about China’s debt, compared to ours. I’ve mistakenly thought that China was doing much better, in regards to debt, compared to the U.S.

  • DJohn1

    China is following a plan. That plan involves bankrupting all the economies of the world. They are using their large workforce to do it.
    Everyone, everywhere, is becoming dependent on Chinese retail goods to survive.
    They are keeping the prices below anything anyone can compete with.
    If they can do this with paper debt as a weapon, then they are ahead when everyone has to declare themselves broken financially and unable to repay the debts to China.
    I predict that the next move will be to move this huge workforce into an army and start foreclosing on everyone in sight. The next financial move will be to relocate the factories on all the nation’s soils that are currently indebted to them.

    Then the remaining people will be indebted to them for life. They will have won this war without ever firing a shot!
    I suggest one move will be to take back Taiwan.

    The largest economic movers in the world are those in control of the oil supplies. Which would mean that China will make a move into the Middle East soon. They not only have the biggest work force in the world, I suggest they have the biggest primitive army in the world as well.

    The advantage being that nothing is lost except human life. Russia’s mistake in the area was to invest in combat helicopters and tanks. In Charlie’s War(A movie yet), Russia was defeated by economics of losing far too many expensive war tools like at least a Helicopter a day in Afghanistan.
    That lesson was not lost on the rest of the Middle East. We are following in Russia’s stupid war tactics. No one here has figured out that expensive toys only work if they are not lost to far less expensive tactical weapons like missiles fired from horseback.
    We run Hummers. We should run half ton cheap trucks instead.
    Those Hummers are retrofitted with armor. The half ton trucks were used prior to this and worked just fine. They were also easier to armor.
    The Hummer gets approximately 9 miles to the gallon. A Hummer retrofitted with an all around diesel engine capable of using any fuel makes more sense. Even more sense is a half ton diesel truck at half the price.
    Will the entire system collapse in on itself? A lot of people think so. But is it staged. Yeah, too much evidence left standing for that theory.
    So when the entire house of cards collapses, who is left standing to benefit? I suggest we will not know because we will all be under military jurisdiction and controlled by the Liar in charge.