Renowned economist Jim O'Neill says investors should overlook the growing debt pile in China, highlighting various positive factors for the world's second-largest economy.
"I can't get excited about the debt issue," Jim O'Neill, former chairman of Goldman Sachs Asset Management, told CNBC Tuesday.
"Not least because in the past few months there's evidence that the rise of debt growth has slowed pretty dramatically and indeed with nominal GDP (gross domestic product) growth accelerating, I think even some of the doom and gloom people about China would concede that the scale of the debt problem has come down a little," O'Neill added.
The credit-fueled economy has been criticized for presenting one of the greatest risks to the global economy. China wants to double the size of its economy between 2010 and 2020, even if that means growing debt in the non-financial sector.
The International Monetary Fund said in August that "international experience suggests that China's credit growth is on a dangerous trajectory, with increasing risks of a disruptive adjustment and/or a marked growth slowdown." The fund projected at the time that non-financial sector debt, which includes households, corporates and government debt is set to reach almost 300 percent of its GDP by 2022.