Does the UK owe money to China?
In 2018, about 27% of UK debt was overseas-owned, and China was the largest single country in that figure. That suggests that China might own about 15% of UK debt — so about 267 billion.
- Belarus. ...
- Cambodia. ...
- Ecuador. ...
- Nigeria. ...
- Egypt. ...
- Lao People's Democratic Republic. Total External Debt to China (2022): $5.25 billion. ...
- Bangladesh. Total External Debt to China (2022): $6.05 billion. ...
- Zambia. Total External Debt to China (2022): $6.08 billion.
The UK national debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts (e.g. Bank of England). This is the highest level of public sector debt since 1961.
Characteristic | National debt in relation to GDP |
---|---|
Macao SAR | 0% |
Brunei Darussalam | 2.06% |
Kuwait | 3.08% |
Hong Kong SAR | 4.27% |
[2] A report by the credit rating agency S&P Global in 2022 estimated that 79 per cent of corporate debt in China was owed by SOEs (the IMF does not break down the proportion of debt owed by SOEs).
China's debt overhang far exceeds the burdens facing the United States. As recently as 2020, total debt in the United States relative to GDP exceeded China's. But as of mid-2022, China's relative debt burden stood 40 percent higher than America's.
Though China owns a large amount of U.S. debt, it isn't the United States's largest creditor. The greatest amount of U.S. debt is owned by the U.S. government, while the largest foreign creditor is Japan. China owns around 2.6% of U.S. debt, which it buys because the Chinese yuan is pegged to the dollar.
In total, other territories hold about $7.4 trillion in U.S. debt. Japan owns the most at $1.1 trillion, followed by China, with $859 billion, and the United Kingdom at $668 billion.
Country/territory | US foreign-owned debt (January 2023) |
---|---|
United Kingdom | $668,300,000,000 |
Belgium | $331,100,000,000 |
Luxembourg | $318,200,000,000 |
Switzerland | $290,500,000,000 |
Many people believe that much of the U.S. national debt is owed to foreign countries like China and Japan, but the truth is that most of it is owed to Social Security and pension funds right here in the U.S. This means that U.S. citizens own most of the national debt.
What country is #1 in debt?
Japan has the highest percentage of national debt in the world at 259.43% of its annual GDP.
At the top is Japan, whose national debt has remained above 100% of its GDP for two decades, reaching 255% in 2023. *For the U.S. and Canada, gross debt levels were adjusted to exclude unfunded pension liabilities of government employees' defined-benefit pension plans.
Public debt in Russia averaged 15.4% of GDP in the decade to 2022, below the average of 32.5% of GDP for Eastern Europe. Public debt in Russia was 18.9% of GDP in 2022.
The most immediate effect would be an increase in interest rates on Treasuries since selling so many at once would artificially depress their prices in the bond market; thus increasing their yields.
The United States pays interest on approximately $850 billion in debt held by the People's Republic of China. China, however, is currently in default on its sovereign debt held by American bondholders.
No, Bank of America isn't owned by China. BofA is an American multinational investment bank that has a partnership with China Construction Bank. In 2011 they decided to sell about half of their stake (about 13.1 billion) in the Chinese company.
Russia divested from all US bond instruments, the only debts the Federal government has, and still owes the US and other investors nearly 300 billion US Dollars. The national debt in Russia was forecast to increase between 2023 and 2028 by in total 16.1 billion U.S.
Nominal GDP Growth Rates During the Asian Financial Crisis
From a national perspective, China buys U.S. debt due to its complex financial system. The central bank must purchase U.S. Treasuries and other foreign assets to keep cash inflows from causing inflation. In the case of China, this phenomenon is unusual.
It began rising at a fast rate in the 1980's and was accelerated through events like the Iraq Wars and the 2008 Great Recession. Most recently, the debt made another big jump thanks to the pandemic with the federal government spending significantly more than it took in to keep the country running.
With $1.1 trillion in Treasury holdings, Japan is the largest foreign holder of U.S. debt. Japan surpassed China as the top holder in 2019 as China shed over $250 billion, or 30% of its holdings in four years.
Where does China own land in the US?
China owns 384,000 acres of American agricultural land. That's a 30% increase just since 2019. And on top of that, they own land near an air force base in North Dakota.
As a result, if the United States and other countries were to stop trading with China, it would disrupt global supply chains and cause economic disruptions in many countries.
Britain's tax burden is set to hit its highest since the Second World War while public debt is close to 100% of gross domestic product, up from 35% just over 15 years ago due to huge spending to support the economy during the global financial crisis, the COVID pandemic and the 2022 surge in energy prices.
China owes the United States $1.3 trillion, which is the most debt out of all the countries that are its debtors. Japan was the primary debt holder until 2008, but now comes in second place, with $1.2 trillion. Other countries with outstanding U.S. debt include Russia, India and South Korea.
Domestic Holders of Federal Debt
The Federal Reserve, which purchases and sells Treasury securities as a means to influence federal interest rates and the nation's money supply, is the largest holder of such debt.
References
- https://en.wikipedia.org/wiki/History_of_the_United_States_public_debt
- https://www.reuters.com/world/uk/next-uk-government-faces-toughest-challenge-since-1950s-debt-ifs-2024-01-25/
- https://www.pgpf.org/blog/2024/04/how-much-is-the-national-debt-what-are-the-different-measures-used
- https://usafacts.org/articles/which-countries-own-the-most-us-debt/
- https://www.clearfinances.net/countries-without-public-debt/
- https://www.ceicdata.com/en/indicator/germany/national-government-debt
- https://nationalinterest.org/blog/buzz/pearl-harbor-what-if-japan-never-attacked-209373
- https://www.britannica.com/place/United-Kingdom/Britain-since-1945
- https://worldpopulationreview.com/country-rankings/countries-by-national-debt
- https://www.quora.com/Why-does-Japan-hold-so-much-U-S-government-debt-What-might-motivate-them-to-stop-doing-this-in-the-future
- https://finance.yahoo.com/news/20-countries-most-debt-china-202359520.html
- https://www.quora.com/If-China-sells-all-US-treasury-bonds-what-will-happen-to-the-US-economy
- https://www.quora.com/Does-Russia-currently-hold-any-debt-or-loans-from-the-United-States
- https://www.pgpf.org/national-debt-clock
- https://www.aljazeera.com/economy/2023/5/31/infographic-how-does-us-debt-rank-compared-world
- https://www.economicshelp.org/blog/634/economics/the-problem-with-printing-money/
- https://en.wikipedia.org/wiki/War_reparations
- https://www.quora.com/What-would-happen-if-the-USA-and-other-countries-stopped-trading-with-China
- https://www.investopedia.com/articles/markets-economy/090616/5-countries-own-most-us-debt.asp
- https://en.wikipedia.org/wiki/Least_developed_countries
- https://www.statista.com/statistics/282841/debt-as-gdp-uk/
- https://collins.house.gov/media/press-releases/collins-china-buying-us-farmland
- https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/
- https://1997-2001.state.gov/issues/economic/fs_000301_wardebt.html
- https://www.investopedia.com/articles/investing/080615/china-owns-us-debt-how-much.asp
- https://thehill.com/opinion/international/4075341-china-is-in-default-on-a-trillion-dollars-in-debt-to-us-bondholders-will-the-us-force-repayment/
- https://www.bundesbank.de/en/statistics/external-sector/international-investment-position-and-external-debt/external-debt-776566
- https://en.wikipedia.org/wiki/History_of_the_British_national_debt
- https://www.cnn.com/2024/04/17/economy/america-debt-interest-rates/index.html
- https://www.investopedia.com/articles/investing/040115/reasons-why-china-buys-us-treasury-bonds.asp
- https://money.com/average-american-personal-debt-amount/
- https://www.fdiintelligence.com/content/data-trends/the-world-banks-top-10-biggest-debtors-82044
- https://www.visualcapitalist.com/government-debt-by-country-advanced-economies/
- https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicspending/bulletins/ukgovernmentdebtanddeficitforeurostatmaast/march2023
- https://www.usnews.com/news/best-countries/articles/the-top-10-economies-in-the-world
- https://www.fidelityinternational.com/editorial/article/how-china-keeps-its-debt-in-order-e1feea-en5/
- https://commodity.com/data/sweden/debt-clock/
- https://www.linkedin.com/pulse/who-going-buy-all-us-debt-rod-khleif-gdete
- https://wallethub.com/answers/cc/what-percentage-of-america-is-debt-free-2140664784/
- https://en.wikipedia.org/wiki/Financial_position_of_the_United_States
- https://www.pgpf.org/blog/2023/05/the-federal-government-has-borrowed-trillions-but-who-owns-all-that-debt
- https://www.quora.com/How-much-does-America-owe-to-other-countries-and-how-much-do-those-countries-owe-America
- https://www.investopedia.com/us-national-debt-by-year-7499291
- https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124
- https://www.investopedia.com/financial-edge/0611/june-20-5-ways-the-u.s.-can-get-out-of-debt.aspx
- https://www.statista.com/statistics/282647/government-debt-uk/
- https://www.ctvnews.ca/business/what-s-canada-s-current-federal-debt-and-where-s-the-government-spending-money-1.6505574
- https://www.reuters.com/markets/europe/italy-2023-budget-deficit-overshoots-debt-still-falls-2024-03-01/
- https://www.economicshelp.org/blog/334/uk-economy/uk-national-debt/
- https://www.pgpf.org/top-10-reasons-why-the-national-debt-matters
- https://en.wikipedia.org/wiki/Foreign-exchange_reserves_of_China
- https://www.pgpf.org/blog/2023/10/why-history-shows-the-united-states-will-not-grow-out-of-its-debt
- https://hansard.parliament.uk/Lords/1965-05-05/debates/6b3c4109-423b-46a1-9b7b-60a1deb4dd60/UnitedKingdomSDebtToUnitedStates
- https://www.itsuptous.org/blog/consequences-of-national-debt
- https://history.blog.gov.uk/2020/12/07/whats-the-context-signing-the-anglo-american-financial-agreement-6-december-1945/
- https://en.wikipedia.org/wiki/Lend-Lease
- https://www.quora.com/Why-does-Japans-national-debt-not-seem-as-bad-as-other-countries-despite-their-economy-appearing-worse
- https://today.yougov.com/politics/articles/48981-most-americans-think-another-world-war-within-the-next-decade
- https://study.com/learn/lesson/german-war-reparations-wwi-wwii.html
- https://www.news18.com/business/meet-jerome-kerviel-the-worlds-poorest-man-with-a-huge-debt-in-his-journal-8036959.html
- https://www.nationalbanken.dk/en/what-we-do/government-debt/what-is-government-debt
- https://en.wikipedia.org/wiki/National_debt_of_Japan
- https://en.wikipedia.org/wiki/United_Kingdom_national_debt
- https://www.investopedia.com/articles/economics/11/successful-ways-government-reduces-debt.asp
- https://asia.nikkei.com/Spotlight/Caixin/China-s-debt-to-GDP-ratio-climbs-to-record-287.8-in-2023
- https://www.statista.com/statistics/1348683/wwii-us-lend-lease-war-dept-aid-by-country-and-category/
- https://www.quora.com/What-would-have-happened-if-Germany-had-won-WWII
- https://en.wikipedia.org/wiki/List_of_U.S._states_and_territories_by_poverty_rate
- https://www.statista.com/statistics/273488/countries-with-the-lowest-national-debt/
- https://www.quora.com/After-World-War-II-What-nations-owed-what-financially-to-the-United-States
- https://www.focus-economics.com/country-indicator/russia/public-debt/
- https://www.cnbc.com/2023/09/10/why-the-national-debt-can-both-help-and-hurt-the-us-economy.html
- https://www.ceicdata.com/en/indicator/russia/government-debt--of-nominal-gdp
- https://en.wikipedia.org/wiki/Anglo-American_loan
- https://www.gao.gov/americas-fiscal-future/federal-debt
- https://www.cbr.ru/eng/statistics/macro_itm/svs/ext-debt/
- https://www.ceicdata.com/en/indicator/norway/government-debt--of-nominal-gdp
- https://www.marketplace.org/2023/05/26/who-does-the-u-s-owe-31-4-trillion/
- https://finance.yahoo.com/news/top-20-countries-owe-us-175515001.html
- https://www.usatoday.com/story/money/2024/01/16/what-national-debt-means-for-you/72111112007/
- https://www.archives.gov/milestone-documents/lend-lease-act
- https://wallethub.com/answers/cc/who-owns-bank-of-america-1000011-2140827712/
- https://www.forbes.com/sites/miltonezrati/2023/01/16/chinas-overwhelming-debt-burden-points-to-still-deeper-problems/
- https://www.cbsnews.com/minnesota/news/good-question-how-did-the-u-s-debt-get-so-high/
- https://247wallst.com/special-report/2024/01/26/americas-poorest-counties/
- https://www.treasuryfinland.fi/news/debt-management-annual-review-is-published-year-2023-marked-by-two-fold-inflation-and-geopolitics/
- https://www.itsuptous.org/blog/who-does-us-owe-money-to
- https://en.wikipedia.org/wiki/National_debt_of_China
- https://www.ceicdata.com/en/indicator/russia/national-government-debt
- https://www.pgpf.org/infographic/the-national-debt-is-now-more-than-34-trillion-what-does-that-mean
- https://finance.yahoo.com/news/men-vs-women-more-credit-120024159.html
- https://www.quora.com/How-long-would-it-take-to-pay-off-the-national-debt-of-the-United-States-if-the-government-stopped-spending-money-and-only-used-money-from-tax-revenue-to-pay-it-off
- https://nationalinterest.org/blog/reboot/was-it-inevitable-what-if-us-never-entered-wwii-165564
- https://www.visualcapitalist.com/which-countries-hold-the-most-us-debt/
- https://www.treasurydirect.gov/government/historical-debt-outstanding/
- https://budgetmodel.wharton.upenn.edu/issues/2023/10/6/when-does-federal-debt-reach-unsustainable-levels
- https://www.taxpolicycenter.org/briefing-book/how-does-federal-government-spend-its-money
- https://www.cnbc.com/2024/03/01/the-us-national-debt-is-rising-by-1-trillion-about-every-100-days.html
- https://chinapower.csis.org/us-debt/
- https://www.imf.org/en/Blogs/Articles/2023/09/13/global-debt-is-returning-to-its-rising-trend