BY TYLER DURDEN
FRIDAY, APR 10, 2026 – 02:45 AM
China’s government debt has surpassed the European Union’s for the first time, marking a major shift in the global debt landscape.
Since the 2008 financial crisis, the U.S., China, and Europe have followed very different borrowing paths. While Europe kept debt growth relatively constrained, both the U.S. and China expanded rapidly—especially after 2020.
The chart below, via Visual Capitalist’s Niccolo Conte, visualizes annual government debt totals for the U.S., EU, and China from 1995 to 2025 in current U.S. dollars (not adjusted for inflation), using data from the IMF.
In 2025, China’s government debt reached $18.7 trillion, surpassing the EU’s $17.6 trillion total for the first time.
The crossover underscores how rapidly China’s borrowing has scaled over the past two decades.
The Rapid Rise in U.S. and China’s Government Debt
In 2008, U.S. government debt stood at $10.9 trillion, roughly in line with the EU’s $10.7 trillion total. By 2025, it had surged to $38.3 trillion, leaving the EU behind by $20.7 trillion
Source:
https://www.zerohedge.com/geopolitical/chinas-debt-surpasses-europe-first-time