Debts: China

(asked on 6th February 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential effect of trends in the level of debt in China on the world financial system.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 13th February 2020

As highlighted by several institutions, including the International Monetary Fund, there are material risks associated with indebtedness in China.

The Financial Policy Committee of the Bank of England, which is responsible for monitoring risks to financial stability in the UK, reflected the risk of a severe recession in China, which would encompass factors such as its debt levels, in its 2019 stress tests of UK banks. The FPC concluded that the UK banking system would be resilient to this risk.

Reticulating Splines