The total assets of the Chinese government far exceeded the debt level from 2010 to 2015, according to a report released by the Chinese Academy of Social Sciences on Aug. 24.
The report states that total assets stayed above 100 trillion yuan ($15 trillion) and total indebtedness increased from 40 trillion to 70 trillion yuan from 2010 to 2015, with social security insurance’s funding gap included. In 2015, total assets exceeded 125 trillion yuan, accounting for 180 percent of the year’s GDP.
The net assets of the Chinese government, with social security insurance’s funding gap included, was between 40 trillion and 50 trillion yuan in the same period, accounting for an average of over 80 percent of GDP, the report said.
Based on a conservative estimate, the report found the debt risks to be generally controllable. It also indicated that total indebtedness was growing fast and warned about accumulated debt risks.
(The article is also published on the People’s Daily Online)