Bad Loans in Chinese Banks in 2009

Estimates place the value of nonperforming loans in China to be between $600 to $900 Billion in 2009. These bad loans make consists of 25 to 30 percent of China’s GDP.

These loans are considered “nonperforming” because the loans were given out  based on political and social connections rather than business factors.

(Examples of corruption around the world.)

Source:  George Friedman, The Next 100 Years: A Forecast for the 21st Century, (New York: Doubleday.2009), page 92.