t seems to be a commonly held view in the West that China’s economic success heralds misfor
tune. Year after year, voices are heard claiming that the country’s good fortune is built on reckle
ss and irresponsible borrowing that presages collapse — a catastrophe that is forever imminent.
As part of this false analysis, Western rating agencies have been sounding the alarm ove
r what they interpret as mounting credit risks in China’s financial sector for many years.
The worry they spark each time they warn that China is supposedly going to hit a “debt iceberg
” necessitates top Chinese government officials explaining to the world what the country’s debt level is,
how it is likely to affect China’s overall economic well-being and what they are doing to address the risks.
That’s why, at a news conference held on the sidelines of the top legislature’s ann
ual session on Thursday, Finance Minister Liu Kun addressed the topic once again.