(Yicai) June 15 -- As China's government debt pushes past CNY100 trillion (USD14.77 trillion) for the first time, experts said the risk remains safe and controllable.

China’s outstanding government bonds reached CNY100.6 trillion at the end of last month, up 15 percent from a year earlier, according to data released by the People's Bank of China on June 12.

Debt has reached a record because China has maintained an active fiscal policy in recent years to counter economic headwinds. The central government has increased borrowing to fund major public projects so as to support investment and growth, while local governments have hiked bond sales to replace hidden debt and reduce risk, thereby lifting the balance of government bonds.

Although the government’s debt is relatively large, the overall risk is safe and controllable, multiple experts told Yicai, pointing out that both the central and local authorities still have much room to borrow.

When measured as a share of gross domestic product, Chinese government debt remains moderate and is not high compared with other major economies, the experts stressed.

Debt-to-GDP was 69 percent at the end of 2024, versus an average of 118 percent and 123 percent for the Group of 20 and the Group of Seven nations, respectively, according to data from China’s Ministry of Finance. The ministry has repeatedly said that China’s government debt ratio remains within a reasonable range and that risks are safe and controllable.

Moreover, Chinese government debt is not used for consumptive expenditure such as wages, but for infrastructure and public works like transportation, municipal services, energy, and water conservancy. These projects create substantial high-quality assets that can generate ongoing returns, support economic growth, and serve as an important source of repayment funds.

Most of China’s debt is domestic, supported by a savings rate above 44 percent, which helps ensure stable funding sources, the experts said. With foreign debt accounting for only about 5 percent of the total, external risk exposure is relatively low, reducing exposure to outside financial developments, they noted.

Editor: Martin Kadiev