These Three Charts Show Why Everyone Should Stop Freaking Out About Chinese Foreign Debt

"..."There has been no significant increase in China’s liabilities with the rest of the world – and when FDI is excluded, the absolute number is small and flat," writes Green. "No impending cataclysm here." 

Standard Chartered

Total foreign debt as a percent of GDP shows "no sign of a substantial ramp-up in borrowing from offshore."

Standard Chartered

China's foreign bank loans to China amount to 10% of GDP, one of the lowest  among emerging markets.

Standard Chartered

The one thing to watch is the pace at which the stock of cross-border loans is growing, currently up 50% year-over-year.

But the recent debt expansion "has been the normalization of what was an abnormal situation: a massive economy shutting itself off from offshore funding sources," writes Green.

Foreign borrowing of 10-14% of GDP is perfectly normal for the world's second largest economy and one that plans to become an international investor, according to Green."

at http://www.businessinsider.com/why-you-shouldnt-worry-about-chinese-foreign-debt-charts-2014-2#ixzz2tbtRXmRU