China Vs. U.S.

There is a lot of talk about China collapsing. Let's compare China to the U.S.

Savings rate: China has a much higher savings rate compared to the U.S. 

Household debt: China's household debt to GDP is lower than the U.S. In fact, it is only 50% of GDP. Most of the debt is mortgage debt, but Chinese tend to pay at least 20% in cash for their house.

 

Corporate debt: China corporate debt is higher than the U.S. This is a bit of a problem. It is now at 150% of GDP. But these are mostly government owned debt from banks to corporations.