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- Index number:
- 000014453-2019-0221
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- Dispatch date:
- 2010-10-09
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- Publish organization:
- State Administration of Foreign Exchange
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- Exchange Reference number：
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- Name：
- The SAFE Releases Data on Chinas External Debt as the End of June 2010
At the end of June 2010, China's outstanding external debt reached USD513.81 billion (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province), of which the outstanding registered external debt was USD307.21 billion and the balance of trade credit was USD206.6 billion.
With respect to the terms, the outstanding long- and medium-term external debt (with the remaining term) was USD170.022 billion, accounting for 33.09 percent of the outstanding external debt. The outstanding short-term external debt (with the remaining term) was USD343.788 billion, accounting for 66.91 percent of the outstanding external debt. Specifically, the outstanding registered short-term external debt (with the remaining term) was USD137.188 billion and the balance of trade credit was USD206.6 billion.
In terms of the composition of the debt, trade credit and trade financing (e.g., credit support for foreign trade provided by banks) accounted for 60.10 percent and 18.48 percent of the outstanding short-term external debt (the remaining term) respectively. Together, the two accounted for 78.58 percent of the outstanding short-term external debt (the remaining term). The data are closely related to the dramatic growth of Chinas foreign trade during recent years. Because trade credit and trade financing transactions are conducted based on the real background in foreign trade, they will not result in additional external debt risks.
In terms of the types of debtor, the outstanding sovereign debt borrowed by ministries under the State Council was USD38.209 billion, accounting for 12.44 percent of the outstanding registered external debt; the outstanding debt of Chinese-funded financial institutions was USD123.094 billion, accounting for 40.07 percent; the outstanding debt of foreign-funded enterprises was USD95.816 billion, accounting for 31.19 percent; the outstanding debt of foreign-funded financial institutions in China was USD43.806 billion, accounting for 14.26 percent; the outstanding debt of Chinese-funded enterprises was USD5.958 billion, accounting for 1.94 percent; and the outstanding debt of other institutions was USD327 million, accounting for 0.10 percent.
In terms of the types of debt, the balance of international commercial loans amounted to USD237.25 billion, accounting for 77.23 percent of the outstanding registered external debt, with the relevant proportion rising by 2.8 percentage points compared with that at the end of 2009. The balance of foreign government loans and loans granted by international financial organizations amounted to USD69.96 billion, accounting for 22.77 percent of the outstanding registered external debt.
In terms of the currency structure, the debt in U.S. dollars accounted for 72.10 percent of the outstanding registered external debt, representing an increase of 4.34 percentage points compared with that at the end of 2009. The debt in Japanese yen accounted for 10.11 percent, representing a decline of 1.78 percentage points compared with that at the end of 2009. The debt in euro accounted for 4.51 percent, a decline of1.87 percentage points compared with that at the end of 2009; other kinds of debt including SDRs and HKD accounted for 13.28 percent of the outstanding registered external debt, a decline of 0.69 percentage point compared with that at the end of 2009.
In terms of sectors in which the debts were invested, with reference to the Industrial Classification of the National Economy, USD41.467 billion was invested in the manufacturing sector, accounting for 21.58 percent of the medium- and long-term outstanding registered external debt (based on contractual terms); USD24.687 billion was invested in the communications and transportation sector, the warehousing sector, and the postal-services sector, accounting for 12.85 percent of the total; USD17.192 billion was invested in the production and supply of electric power, gas, and water, accounting for 8.95 percent; USD11.771 billion was invested in the information technology services sector, accounting for 6.13 percent; and USD11.038 billion was invested in the real estate sector, accounting for 5.74 percent.
From January to June 2010, medium- and long-term external borrowing totaled USD19.776 billion, a year-on-year increase of USD10.443 billion or 111.89 percent. The principal repayment was USD12.395 billion, a year-on-year decrease of USD7.077 billion, or 36.34 percent. The interest payment was USD1.443 billion, a year-on-year decrease of USD641 million, or 30.76 percent.
Addendum: Definition of terms and interpretation
Trade credit refers to the external liability arising from directly extending credit between the seller and buyer of goods, specifically transactions between residents in Mainland China and foreign non-residents (including non-residents in Hong Kong SAR, Macao SAR, and Taiwan province), i.e., the debt incurred due to the difference between the time of payment and that of the transfer of ownership of the goods. Trade credit includes credit directly provided by the supplier (e.g., the overseas exporter) for commodity transactions and services, and advance payments made by buyers (e.g., overseas importers) for goods, services, and on-going business (or business to be undertaken).
Trade financing refers to loans extended by a third party (e.g., banks) related to trade to exporters or importers, for instance, loans extended by foreign financial institutions or export credit agencies to buyers.
Trade-related credit is a broad concept. In addition to trade credit, it also includes other kinds of credit provided for trade activities. According to the definition, trade-related credit includes trade credit, trade financing, short-term notes related to trade, and so forth.
