BEIJING (AP) — China's finance minister sought Wednesday to defuse concern over the country's rising debt, saying government borrowing is below danger levels and regulators can prevent financial system risks.
Xiao Jie's comments follow Beijing's criticism last year of global rating agencies that cut its credit rating due to China's total government and corporate debt burden. Chinese regulators are trying to curb reliance on debt to support economic growth and clear away unpaid loans but private sector analysts warn they might be moving too slowly.
The portion of China's debt that is owed by the government declined to the equivalent of 36.2 percent of annual economic output at the end of 2017, down 0.5 percentage points from a year earlier, according to Xiao. He said that was safely below an international "warning level" of 60 percent.
The minister made no mention of corporate borrowing that makes up most of a total Chinese debt burden estimated to have risen to at least 270 percent of gross domestic product, close to the level of developed economies.
By strictly enforcing debt and budget rules, "we are fully able to ensure there is no systemic risk," said Xiao at a news conference held during the annual meeting of China's ceremonial legislature.