Bond issuance cited as key driver, alongside economic defense and conversion of off-balance-sheet liabilities
![Chinese President Xi Jinping applauds after Serbian President Aleksandar Vucic's speech at a ceremony awarding the "Friendship Medal of the People's Republic of China" at the Great Hall of the People in Beijing last month. Xi paid a state visit to North Korea from June 8 to 9. [Reuters]](https://wimg.heraldcorp.com/news/cms/2026/06/14/news-p.v1.20260609.24f9fd057cf74794b1a3069b30a96a53_P1.jpg)
China's government debt has surpassed 100 trillion yuan (about $14.8 trillion) for the first time in history.
The People's Bank of China said in its May financial statistics report that the outstanding balance of government debt stood at 100.6 trillion yuan (about 22,601 trillion won) at the end of May, up 15.1 percent from a year earlier, according to Chinese financial outlet Yicai on Sunday.
China's government debt stood at 94.92 trillion yuan (about 21,325 trillion won) at the end of last year and 99.37 trillion yuan (about 22,325 trillion won) at the end of April.
Taiwan's Central News Agency reported that China's outstanding government debt grew from 46.55 trillion yuan (about 10,458 trillion won) in 2020 to 82.1 trillion yuan (about 18,445 trillion won) in 2024 and 96.05 trillion yuan (about 21,579 trillion won) last year — roughly doubling over the past five years.
The surge has been driven primarily by government bond issuance. Yicai said Beijing has pursued an active fiscal policy in recent years to counter downward pressure on the economy.
Particularly, the Chinese government has ramped up new bond issuance to fund major infrastructure projects, Yicai added, while local governments have issued large volumes of bonds to replace off-balance-sheet liabilities and reduce the risks they pose.
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