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In the recent global financial discussions, a striking topic is undoubtedly the debt situation of China, the United States and Japan.
The United States, the world's largest economy, has a staggering $34.9 trillion in public debt;
Japan, despite its small economy, has a huge debt of $8.6 trillion.
And China, a country with a rapidly rising economy, is just as striking.
Today, we will demystify the debt of these three economic giants and understand the economic logic and impact behind it.
First, let's take a look at the debt situation in the United States.
At $34.9 trillion, this figure is almost double its gross domestic product (GDP).
The rapid increase in debt is largely due to extensive fiscal stimulus and persistent fiscal deficits over the past few years.
New York, Los Angeles and Chicago, the economic powerhouses, have also indirectly affected the finances of local governments from rising national debt levels, from municipal infrastructure to public services.
Next, we turn to Japan.
With $8.6 trillion in debt, Japan is one of the most indebted developed countries in the world, with a debt-to-GDP ratio of more than 250%.
Large cities such as Tokyo and Osaka have strong economic strength, but high levels of national debt also limit their potential for further development, such as fiscal allocations to new technology investment and social welfare spending.
Finally, let's look at the situation in China.
China's public debt remains at a relatively healthy level relative to the size of its economy, about 50% of GDP, much lower than that of the United States and Japan.
In major economic centers such as Beijing and Shanghai, this low level of debt has supported large-scale infrastructure construction and public service improvements, thus maintaining stable economic growth and sustainable urban development.
However, there are two sides to every coin.
While China's debt levels are low, the risks hidden in its debt structure cannot be ignored.
The implicit debt of local governments and the high leverage ratio of state-owned enterprises are potential risk points.
At the same time, changes in the global economic environment, such as the U.S. interest rate hike policy, may cause external shocks to China and other economies, affecting their debt management and economic stability.
By comparing the debt profiles of China, the United States, and Japan, it is not difficult to see that while the numbers vary widely, each country faces its own unique fiscal challenges and economic risks.
The U.S. needs to deal with the risks posed by continued debt inflation;
Japan, for its part, needs to address the inhibition of economic dynamism caused by its high debt ratio.
China, on the other hand, needs to be wary of the potential risks of structural debt problems.
To solve these problems, it is necessary for each country to adopt effective policies and measures according to its own situation to ensure the long-term healthy development of the economy.
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-ENDS-
Text: Little Bee
Audit|Ancient Oasis, Thousand Trees