FINANCE

China’s External Debt Risks Stay Well Below Global Red Lines

Published: Mar. 30, 2026 3:52 p.m. GMT+8

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China’s external debt metrics remained comfortably within global safety thresholds last year, official data showed, signaling contained risks even as foreign investors pulled back from its bond market.

China’s outstanding external debt edged down 0.7% year-on-year to $2.33 trillion at the end of last year, according to data released Friday by the State Administration of Foreign Exchange (SAFE).

China’s External Debt Edges Down

Core risk indicators remained within widely accepted safety thresholds. The external debt-to-GDP ratio fell slightly from a year earlier to 11.9%, below the 20% benchmark.

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China’s external debt decreased 0.7% year-on-year to $2.33 trillion by end-2023.
Key risk ratios—debt-to-GDP at 11.9%, debt-to-exports at 56.3%, and debt service ratio at 6.2%—all remained well below global safety thresholds.
Foreign investor holdings in Chinese debt securities fell 8% amid bond market volatility, with banks holding 40% of total external debt.

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