These Three Charts Show Why Everyone Should Stop Freaking Out About Chinese Foreign Debt (FXI, EWH)

China's growing external debt has once again set off alarm bells. The State Administration of Foreign Exchange (SAFE) said the country had $823 billion of external debt at the end of Q3 — about 9% of GDP.   Some have argued that this is evidence of desperation, and that China is now borrowing money from foreigners, having maxed out on domestic credit.  Pointing to China’s international investment position (IIP) data, Standard Chartered's Stephen Green writes that this measure is the most ...