Recently, the IMF head cautioned countries across the globe against the nature of rising debt levels in China and the possibility of China ‘exporting its debt’ to other countries through infrastructural projects (via the One Belt One Road initiative). Analyzing the possibility of debt export from China may be difficult to assess without empirical proof on the actual extent of debt exposure (from China to other countries). However, the note of caution does throw some questions on the extent of macro-economic vulnerability that countries recipient to Chinese foreign investment (including long-term infrastructural loans) face from China’s widening debt situation. China is currently the second largest economy in the world and the biggest trading nation, and is the third-largest bond market. Scholars continue to argue how the Asian Dragon’s expanding geo-economic position along with rising debt levels pose systemic risks to global financial stability. But, how did China’s debt (crisis) situation get this far? What kind of systemic risks does China’s debt situation impose on other recipient countries? And, what can some of these countries do to be more macro-prudent? This article discusses some of these questions.