A view of the Lujiazui area in Shanghai Photo: VCG

　　Some Western media outlets have recently revived their pessimistic take on the Chinese economy, with some hyping the claim that a "growing debt burden limits space for economic stimulus."

　　Such claims have been proven wrong before and lack any solid foundation this time around, as China"s debt level remains lower than that of many major economies, the country has taken concrete steps to address the debt issue, and it retains ample policy room to ensure stable, high-quality growth.

　　China"s government debt ratio is much lower than the average levels of both major developed economies and major emerging markets. As of the end of 2025, China"s total government debt stood at 102.5 trillion yuan ($15.32 trillion), including 41.2 trillion yuan in central government debt, 54.8 trillion yuan in statutory local government debt and 6.5 trillion yuan in hidden local government debt, according to a State Council report published in August.

　　Is that debt level high? Under the broader measure used by the IMF, which includes more local government financing vehicle debt in the government sector, China"s total government debt is expected to be around 107 percent of GDP around 2026. By comparison, the US is projected at about 126 percent during the same period, and Japan at more than 200 percent, according to some estimates. In other words, China"s government debt is not the highest among major economies.