Macro EconomyMedium•11 October 2026•
1 min read
China's Debt Interest Costs Surpass US Levels Amid 341% Surge
Key Facts
1China's interest payments skyrocketed 341% between 2013 and 2025, becoming the fastest-growing budget category.
2Debt interest costs now account for 19% of China's central government general public budget.
China's interest payments skyrocketed 341% between 2013 and 2025, becoming the fastest-growing category in the general budget. Fortune reported that debt interest costs now account for 19% of China's central government general public budget, surpassing the 14% of the U.S. federal budget allocated to interest costs.
The surge is attributed to massive borrowing by Beijing to prop up economic growth and manage local government debt. As fiscal strain intensifies, interest payments have grown faster than any other major spending category, limiting the capacity for future stimulus in the world's second-largest economy and raising long-term sovereign risk concerns.