Should We Be Worried About China's Debt Levels? Larry Fink Thinks So

Larry Fink, CEO of BlackRock thinks that investors should be concerned about China's rising debt levels.

Speaking to Bloomberg, Fink acknowledged that China has heavily invested in its economy since 2008, and the government has earned the "best marks in transforming their society."

Fink also pointed out that China is on year four of its 10-year plan to transition the economy away from manufacturing to a "much more resilient domestic economy."

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However, he pointed out that most countries looking to transform their economy do so over a span of 50 years. As such, China may be held hostage to high levels of debt, especially among some of the less profitable state owned companies.

When asked if he is worried about the growing debt level in China, Fink answered, "We have to be."

"We all have to be worried about it," he said. "But keep in mind — if the economy continues to grow 6-plus percent — you can grow out of your problems."

However, he stated that a country cannot grow at 6-plus percent at a time when the debt level on the balance sheet is growing at a faster rate.