Among the outstanding external debt, the outstanding medium- and long-term external debt (with the remaining term) was USD194.096 billion; the outstanding short-term external debt (with the remaining term) was USD500.901 billion. Specifically, trade credit between enterprises and bank trade financing accounted for 49.75 percent and 24.26 percent of the outstanding short-term external debt respectively. The two accounted for 74.01 percent of the outstanding short-term external debt (with the remaining term). The data are closely related to the rapid growth of China ’s foreign trade during recent years.

The outstanding debt of Chinese-funded financial institutions was USD211.953 billion, accounting for 47.54 percent of the outstanding registered external debt; the outstanding debt of foreign-funded enterprises was USD136.36 billion, accounting for 30.59 percent; the outstanding debt of foreign-funded financial institutions was USD54.054 billion, accounting for 12.13 percent; the outstanding sovereign debt borrowed by ministries under the State Council, the outstanding debt of Chinese enterprises, and the outstanding debt of other institutions were USD37.371 billion, USD5.925 billion, and USD134 million respectively.

In terms of outstanding registered external debt, USD debt accounted for 75.94 percent, JPY debt 8.06 percent, Euro debt 7.49 percent, and debt in other currencies 8.51 percent. In terms of outstanding registered long- and medium-term external debt (based on contractual terms), borrowed money invested in the manufacturing industry accounted for 25.20 percent, the transportation, storage, and postal industry 13.35 percent, the electric power, coal gas, and water production and supply industry 7.67 percent, the real estate industry 4.87 percent, and the information technology service industry 3.65 percent.

In 2011 China newly borrowed USD44.447 billion as medium- and long-term external debt, repaid USD33.165 billion as the

principal of long- and medium-term external debt, and paid USD2.275 billion in interest. Net inflows under the outstanding long- and medium-term external debt totaled USD9.007 billion, down 24.85 percent on a year-on-year basis.

According to preliminary calculations, in 2011 China ’s external debt/GDP ratio was 9.52 percent, its external debt/export revenue ratio was 33.31 percent, and its debt servicing ratio was 1.72 percent. The ratio of short-term external debt to foreign exchange reserves was 15.75 percent. All of these indexes are within the safe range of international standards.

Annex: Glossary and relevant definitions

Trade Credit between Enterprises 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 the time of the ownership transfer of the goods. Trade credit between enterprises 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).

Bank Trade Financing refers to loans related to trade extended by a third party (e.g., banks) 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 between enterprises, it also includes other kinds of credit provided for trade activities. According to the definition, trade-related credit consists of trade credit between enterprises, bank trade financing, short-term notes related to trade, and so forth.

External Debt/GDP Ratio refers to the ratio of the external debt balance as of the end of the year to the Gross Domestic Product of the current year. At present, the internationally accepted safety line for the External Debt/GDP Ratio is 20 percent.

External Debt/Export Revenue Ratio refers to the ratio of the external debt balance as of the end of the year to the export revenue for trade in goods and services of the current year, which is calculated on the basis of the statistical coverage of the balance of payments. At present, the internationally accepted safety line for the External Debt/Export Revenue Ratio is 100 percent.

Debt Servicing Ratio refers to the ratio of the repayment amount of the external debt principal and interest (the sum of the repayment amount for the principal and interest of the long- and medium-term external debt principal and the payment amount of the interest for the short-term external debt) to the export revenue for trade in goods and services of the current year, which is calculated on the basis of the statistical coverage of the balance of payments. At present, the internationally accepted safety line for the Debt Servicing Ratio is 20 percent.

Ratio of Short-term External Debt to Foreign Exchange Reserves refers to the ratio of the outstanding short-term external debt of the remaining term to the reserve amount of foreign exchange controlled by the monetary authority. At present, the internationally accepted safety line for the Ratio of Short-term External Debt to Foreign Exchange Reserves is 100 percent.