The State Administration of Foreign Exchange (SAFE) has recently released data on China’s external debt as of the end of September 2023. SAFE’s Deputy Administrator and Press Spokesperson Wang Chunying answered media questions on relevant issues.

Q: Could you brief us on China’s external debt in the third quarter of 2023?

A: In the third quarter of 2023, the scale of China’s external debt dropped slightly, and its structure remained basically stable. As of the end of September 2023, the full-scale outstanding external debt (including domestic and foreign currencies) reached USD 2382.9 billion, representing a decline of USD 50.9 billion or 2% from the end of June. With respect to currency structures, the external debt in domestic currency accounted for 45% of China’s total external debt, up by 1 percentage point from the end of June. In terms of maturity structure, the medium- and-long-term external debt accounted for 44%, basically the same as the level recorded at the end of June 2023.

Q: What would you say about China’s external debt situation?

A: The decline in the scale of external debt was mainly influenced by the decrease in the outstanding external debt of banks. In the third quarter of 2023, the outstanding external debt of banks fell by USD 55.1 billion, contributing 108% to the decline in outstanding external debt.

China’s external debt level is expected to remain generally stable. With major developed economies nearing the conclusion of their monetary policy tightening cycles, a related gradual reduction in spillover impacts is anticipated. In summary, the favorable conditions supporting China’s economic development outweigh the unfavorable factors. The overall trend of China's economic recovery and long-term improvement remains unchanged. The foundation for maintaining a generally stable external debt scale remains strong.