Reshaping China's Economy: Is China sinking in debt?

Editor's note:Index.html" target="_blank">In the previous episode of the CGTN special series, ReshapIndex.html" target="_blank">Ing Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina's Index.html" target="_blank">Index.html" target="_blank">economy, the issues of risIndex.html" target="_blank">Ing labor cost and economic transformation were discussed. Today, our reporter Ge Yunfei went to the northern Index.html" target="_blank">Industrial city of TianjIndex.html" target="_blank">In, to see how the mountIndex.html" target="_blank">Ing debt had changed Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina.

Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina has gone crazy for skyscrapers.

Among the world's 10 tallest buildIndex.html" target="_blank">Ings, the country takes seven spots. Also, Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina boasts over 1,000 skyscrapers taller than 200 meters.

Index.html" target="_blank">In the past decade, Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina's second- and third-tier cities have tried their best to catch up with the first-tier cities. For them, liftIndex.html" target="_blank">Ing the skylIndex.html" target="_blank">Ines is perhaps the best way to showcase their economic development.Along with the country's massive Index.html" target="_blank">Investment Index.html" target="_blank">In its Index.html" target="_blank">Infrastructure comes the mountIndex.html" target="_blank">Ing debt.

TalkIndex.html" target="_blank">Ing about Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina's Index.html" target="_blank">Index.html" target="_blank">economy, one of the most frequently used words is "leverage." Simply put, leverage is to borrow money to Index.html" target="_blank">Invest.

Index.html" target="_blank">In Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina, the government debt ratio has stayed low for a long time because the government once objected the idea of borrowIndex.html" target="_blank">Ing money.However, Index.html" target="_blank">In 2008, amid the global fIndex.html" target="_blank">Inancial crisis, Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina launched a four trillion yuan economic stimulus package, kickIndex.html" target="_blank">Ing off the rapid expansion of debt.

Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina, Japan and the United States' ratios of government debt to GDP. /CGTN Photo

AccordIndex.html" target="_blank">Ing to the Index.html" target="_blank">International Monetary Fund (IMF), Index.html" target="_blank">In the past decade, the ChIndex.html" target="_blank">Inese government's debt ratio Index.html" target="_blank">Increased from 27 percent to 50.1 percent, which raised lots of concerns.Index.html" target="_blank">In the meantime, the United States' national debt-to-GDP ratio grew from 73.8 percent to 106.1 percent, and Japan's ratio Index.html" target="_blank">Increased from 183.4 percent to 238.2 percent.

Associate professor of applied economics at PekIndex.html" target="_blank">Ing University, Yan Se, said, "If we just thIndex.html" target="_blank">Ink about this number, this is not worryIndex.html" target="_blank">Ing at all."

But numbers don't tell the whole story.

On the other side of TianjIndex.html" target="_blank">In is one of Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina's versions of Manhattan, the Yujiapu FIndex.html" target="_blank">Inancial District.Index.html" target="_blank">In the past decade, massive Index.html" target="_blank">Investment of 200 billion yuan (30 billion U.S. dollars) has turned the marshland Index.html" target="_blank">Into a concrete jungle of skyscrapers.

The strategy of "build-it, fill-it" worked Index.html" target="_blank">In the era of high-speed growth. However, Index.html" target="_blank">In a slowIndex.html" target="_blank">Ing Index.html" target="_blank">Index.html" target="_blank">economy, it's hard to fill those buildIndex.html" target="_blank">Ings with people and busIndex.html" target="_blank">Inesses.

"You've got some provIndex.html" target="_blank">Inces that are heavily reliant on state-led fixed Index.html" target="_blank">Investment or a real estate market that may not have the supply and demand fundamental to build it and consume the houses that have been built," said the Chief Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina Economist of Standard Bank Jeremy Stevens.

The debt ratio Index.html" target="_blank">In Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina's real estate sector had reached an all-time high of nearly 80 percent Index.html" target="_blank">In 2018. SeeIndex.html" target="_blank">Ing the danger, ChIndex.html" target="_blank">Inese President Xi JIndex.html" target="_blank">InpIndex.html" target="_blank">Ing warned that houses are built to be Index.html" target="_blank">Inhabited, not for speculation.

To lower the risks Index.html" target="_blank">In the property market, the ChIndex.html" target="_blank">Inese government has aggressively tried to curb the over-heated market Index.html" target="_blank">In the past few years, with measures of puttIndex.html" target="_blank">Ing price caps on properties.AccordIndex.html" target="_blank">Ing tothe chief analyst of Beike Real Estate Research Index.html" target="_blank">Institute Xu Xiaole, the government noticeably reIndex.html" target="_blank">Ined Index.html" target="_blank">In the rapidly risIndex.html" target="_blank">Ing property prices Index.html" target="_blank">In big cities after this round of regulatory policies.Xu said, "The risk of risIndex.html" target="_blank">Ing fIndex.html" target="_blank">Inancial leverage is gradually fadIndex.html" target="_blank">Ing."

CurbIndex.html" target="_blank">Ing housIndex.html" target="_blank">Ing prices is part of the grand national deleveragIndex.html" target="_blank">Ing efforts. Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina's macro leverage ratio peaked Index.html" target="_blank">In 2017 but decreased by 1.5 percentage poIndex.html" target="_blank">Ints Index.html" target="_blank">In 2018, markIndex.html" target="_blank">Ing the first drop Index.html" target="_blank">In a decade.

"I thIndex.html" target="_blank">Ink that that's somethIndex.html" target="_blank">Ing that the foreign community hasn't recognized, that sea-change Index.html" target="_blank">In Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina over the last three years and how decisions are made,"Stevens said.

Yan said that Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina's political system would give the country a unique strength Index.html" target="_blank">In dealIndex.html" target="_blank">Ing with fIndex.html" target="_blank">Inancial risks."The ChIndex.html" target="_blank">Inese government has a powerful coordIndex.html" target="_blank">Ination capacity. So they can mobilize resources to deal with any potential debt crisis."

Index.html" target="_blank">In 2018, Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina's leverage ratio decreased for the first time Index.html" target="_blank">In a decade. /CGTN Photo

As the fIndex.html" target="_blank">Inancial risks come down, Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina still needs to fIndex.html" target="_blank">Ind a new drivIndex.html" target="_blank">Ing force to boost its Index.html" target="_blank">Index.html" target="_blank">economy.

The answer lies Index.html" target="_blank">In the world's largest middle class, and their stunnIndex.html" target="_blank">Ing consumIndex.html" target="_blank">Ing power. Index.html" target="_blank">In the next episode, CGTN's Ge Yunfei will go to the world's smartest supermarket, and talk to the new forces Index.html" target="_blank">In Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina's car manufacturIndex.html" target="_blank">Ing sector to check what leverage Index.html" target="_blank">Index.html" target="_blank">ChIndex.html" target="_blank">Ina has to wIndex.html" target="_blank">In the future.