Research on the Impact Pathways of European Sovereign Debt Default Risk on China's Financial Stability
Journal: Modern Economics & Management Forum DOI: 10.32629/memf.v6i5.4541
Abstract
Since the 1980s, global sovereign debt crises have undergone a significant shift from emerging economies to developed economies, with their influence continuously strengthening and their scope expanding from initial regional impacts to a global scale. Entering the new century, China has rapidly expanded its foreign economic cooperation and creditor relationships through initiatives such as the “Belt and Road,” becoming an important participant in global economic governance. As of 2023, China has become a major creditor to several European countries, holding substantial amounts of European sovereign bonds. This close financial linkage makes the new wave of European sovereign debt risks highly relevant to China, as potential sovereign debt defaults could impact China’s financial stability through multiple channels. This study will analyze the pathways through which European sovereign debt default risks affect China’s financial stability, aiming to provide theoretical foundations and practical guidance for formulating relevant policies.
Keywords
European sovereign debt; default risk; financial stability
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