Chinese Government Minimized Debt Risks

The government debt risks of China has been managed although liabilities soared at a quicker rate in the past few year as stated by the official Shanghai Securities Journal reported on Friday. The social security funds increased by 70 percent worth 70 trillion yuan or $10.50 trillion between the years of 2010 and 2015.

China’s GDP in 2015 equates to 68.65 trillion yuan. In comparison, the country's government debt was considerably lower than the GDP. Yet, when it comes to the debt accrued by the state firms, these are in high levels which are significant as it may imply higher debt for the government.

The assets of the Chinese government is greater than the reported 125 trillion yuan in 2015. Nevertheless, the government was able to curb the debt risks and the calculation of the report from Chinese Academy of Social Sciences (CASS) includes both the shortfalls and contingent debt.