China | Why China’s subsidy to the world is likely to endure
China is a significant net creditor to the rest of the world. At the end of 2020, its foreign assets totaled US$8,704 billion, or 59.1% of GDP, compared with foreign liabilities of US$6,554 billion, or 44.5% of GDP.
Nonetheless, earnings on foreign liabilities (foreign capital in China) substantially exceed those on foreign assets (China’s investment abroad). In fact, the average rate of return of 6.0% on inbound capital in 2020 was double that on outbound capital.
Download the report to find out:
- Why is the gap in return so large?
- Will the yield gap narrow?
- Will China’s foreign assets and liabilities continue to rise?
Tags:
Related Services
Post
UK: Key themes 2026 – Sluggish growth and fiscal worries
We think 2026 will be another challenging year for the UK economy – our GDP growth forecast of 1% is at the bottom of the consensus. Four themes will be key to the outlook, in our view.
Find Out More
Post
Nordics: Key themes 2026 – Bright spots emerging
We forecast growth across the Nordic economies to diverge somewhat next year but share the same underlying drivers.
Find Out More
