At the end of September 2010, China's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) reached USD546.449 billion. Specifically, the outstanding registered external debt reached USD326.549 billion and the balance of trade credit totaled USD219.9 billion.
With respect to terms, outstanding long- and medium-term external debt (with the remaining term) was USD177.008 billion, accounting for 32.39 percent of the outstanding external debt. Outstanding short-term external debt (with the remaining term) was USD369.441 billion, accounting for 67.61 percent of the outstanding external debt. Specifically, the outstanding registered short-term external debt (with the remaining term) was USD149.541 billion and the balance of trade credit was USD219.9 billion.
In terms of the composition of the debt, trade credit and trade financing (e.g., credit support to foreign trade provided by banks) accounted for 59.52 percent and 18.65 percent of the outstanding short-term external debt 2010 (the remaining term) respectively at the end of September. The trade credit and trade financing accounted for 78.17 percent of the outstanding short-term external debt (the remaining term). The data are closely associated with the dramatic growth of Chinas foreign trade during recent years. Because trade credit and trade financing are conducted against a real foreign trade background, they generally will not result in extra external debt risks.
In terms of the types of debtors, the outstanding debt of Chinese-funded financial institutions was USD133.679 billion, accounting for 40.94 percent of the total outstanding registered external debt; the outstanding debt of foreign-funded enterprises was USD101.038 billion, accounting for 30.94 percent; the outstanding debt of foreign-funded financial institutions was USD46.971 billion, accounting for 14.38 percent; the outstanding sovereign debt borrowed by ministries under the State Council was USD38.571 billion, accounting for 11.81 percent; the outstanding debt of Chinese-funded enterprises was USD5.901 billion, accounting for 1.81 percent; and the outstanding debt of other institutions was USD389 million, accounting for 0.12 percent.
In terms of the types of debt, the balance of international commercial loans amounted to USD254.591 billion, accounting for 77.96 percent of the outstanding registered external debt, with the proportion rising by 3.54 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 USD71.958 billion, accounting for 22.04 percent.
In terms of the currency structure, debt in US dollars accounted for 71.91 percent of the outstanding registered external debt, representing an increase of 4.15 percentage points compared with that at the end of 2009. Debt in Japanese yen accounted for 10.29 percent, representing a decline of 1.6 percentage points compared with that at the end of 2009. Debt in euro accounted for 4.32 percent, a decline of 2.06 percentage points compared with that at the end of 2009; other kinds of debt, including SDRs and HKD, accounted for 13.48 percent, a decline of 0.49 percentage point compared with that at the end of 2009.
In terms of the sectors in which the debts are invested, with reference to the Industrial Classification of the National Economy, USD43.821 billion was invested in the manufacturing sector, accounting for 21.45 percent of the medium- and long-term outstanding registered external debt (based on contract terms); USD25.778 billion was invested in the transportation, warehousing, and postal service sectors, accounting for 12.91 percent; USD17.907 billion was invested in the production and supply of electricity, coal gas, and water, accounting for 8.97 percent; USD12.05 billion was invested in the information technology service sector, accounting for 6.04 percent; USD10.687 billion was invested in the real estate sector, accounting for 5.35 percent.
From January to September 2010, medium- and long-term external borrowing totaled USD27.847 billion, an increase of USD14.002 billion or 101.13 percent over that during the same period of 2009; repayment of the principal was USD17.904 billion, a decrease of USD8.055 billion, or 31.03 percent, over that during the same period of 2009. Interest payments totaled USD2.031 billion, a decrease of USD532 million, or 20.76 percent.
Addendum: Definition of terms and interpretations
Trade credit refers to external liability arising from directly extending credit between the seller and buyer of goods transactions, 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., debt incurred due to the difference between the time of payment and the time 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 by buyers (e.g., overseas importers) for goods, services, and on-going business (or business to be undertaken).
Trade financing refers to a loan related to trade extended by a third party (e.g., banks) to an exporter or importer--for instance, a loan extended by a foreign financial institution or an export credit agency to a buyer.
Trade-related credit is a broad concept. In addition to trade credit, it also involves other kinds of credit provided for trade activities. As it is defined, trade-related credit includes trade credit, trade financing, short-term notes related to trade, and so forth.
