Author(s)

Xinyu Zhu, Fan Cui, Hui Li

Corresponding Author

Xinyu Zhu

ABSTRACT

Foreign debt plays an important role in making up for the lack of state construction funds and promoting the rapid development of the national economy. However, since the 1990s, China's external debt has grown in size and has become a world debtor. How to manage this huge amount of assets and safeguard national interests has become a major problem facing our authorities. Based on this, this paper analyzes the risk of my foreign debt and gives the countermeasures. Firstly, it outlines the external debt, introduces its definition, role and negative impact, then clarifies the current situation of China's external debt, and then analyzes the risk of holding huge US treasury bonds in China, and then elaborates on the causes of China foreign debt risk. Finally, based on this, the evasive countermeasures are proposed, which is of great significance for the prevention of foreign debt risks.

KEYWORDS

External debt; assets; economy; interest