The total debt in China, including state, corporate and household doubled between 2008-2017. It is now 256% of its GDP. A major cause of this is shadow banking, specifically in the mortgage market. Chinese working and middle class households feel the high debt burdens of their new homes compounded by a slowing economy. While the good news for China is that its debts are internal, not international, still this creates a big problem for funding its infrastructure projects.
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