Debt/GDP comparisons take into account only one side of the balance sheet. Household debt/wealth is also a relevant measure, and by this gauge China is the least levered of the world’s major economies. Some people point to a high ratio of wealth/GDP as an indication of asset bubbles, but that is not necessarily the case (it could also reflect great efficiency and confidence in estimating future cash flows). All these measures have their uses.
In China’s case, the fact that debt is roughly half of home equity points to a very stable household sector (of course the debt of SOE’s is far from sound. A 11.5% nominal GDP growth rate gives a lot of room for maneuver.