China's Government Debt Surpasses 100 Trillion Yuan, Doubling in Five Years

The People's Bank of China (PBOC) released its financial statistics report for May yesterday, showing that as of the end of May, China's government bond balance had risen to 100.6 trillion yuan (approximately 470 trillion New Taiwan dollars), a 15.1% increase from the same period last year. Official data indicates that China's government debt balance has nearly doubled over the past five years.

According to a report by Chinese media outlet First Financial, China's government debt primarily stems from bonds issued by the government. The PBOC's data signifies that China's government debt balance has surpassed the 100-trillion-yuan threshold for the first time.

The report attributes the surge beyond 100 trillion yuan to the implementation of proactive fiscal policies in recent years aimed at countering economic slowdown pressures. On one hand, the government has increased new borrowing to raise more funds for major projects in areas such as public welfare, aiming to stabilize investment and the economy. On the other hand, to resolve risks associated with local governments' hidden debts, substantial government bonds have been issued in recent years to replace these hidden debts, making them visible and thereby pushing up the government bond balance.

In November 2024, the Standing Committee of China's National People's Congress approved the 'State Council's proposal to increase local government debt limits to replace existing hidden debt,' launching a debt resolution program totaling 12 trillion yuan to gradually eliminate local hidden debt over several years. This initiative is the primary reason for the significant increase in China's government debt balance over the past two years.

The PBOC's report also shows that in the first five months of this year, the incremental social financing scale totaled 17.48 trillion yuan, 1.16 trillion yuan less than the same period last year. Among this, net financing from government bonds amounted to 5.67 trillion yuan, down 634 billion yuan year-on-year.

Official statistics show that in 2020, China's government debt balance was 46.55 trillion yuan, with a debt-to-GDP ratio (liability rate) of 45.8%. By 2024, it had increased to 82.1 trillion yuan, with the liability rate surpassing the internationally recognized warning level of 60% and reaching 68.7%. In 2025, the debt balance rose to 96.05 trillion yuan. Now, it has broken through the 100-trillion-yuan mark. (Editors: Yang Shengru / Chen Yanjun)