Global debt reached a record high in 2025 and rose in the world’s two largest economies
The pledge came as the world’s second-largest economy weathers a years-long real estate slump and cooling domestic demand. Beijing faces growing pressure to balance short-term growth targets with longer-term deleveraging, as it seeks to transition to a more sustainable economy.
Li urged local authorities to proactively defuse debt risks and strictly guard against “fake debt reduction”.
Data from the Washington-based institution showed that China’s government debt rose to 96.8 per cent of gross domestic product by the end of 2025, up from 88.4 per cent a year earlier.
Source: News - South China Morning Post
