Credit Exposure Risk: China’s Banks vs U.S. Banks in 2025

Deepseek slightly favors the Industrial and Commercial Bank of China (ICBC) with a 2.7% visibility share over Bank of America (BoA) at 2%, indicating a focus on Chinese lenders' direct exposure to property defaults as the primary risk. Its neutral tone suggests a balanced view but implies that China's lenders might face immediate pressure before U.S. banks experience significant ripple effects.

Grok prioritizes Evergrande (3.4%) over both BoA and ICBC (2.7% each), highlighting the Chinese property sector's vulnerability as the core trigger, with a skeptical tone toward the stability of China's financial system. It suggests that Chinese lenders could collapse first due to proximity to the crisis, while U.S. banks might only feel secondary impacts.

Chatgpt equally emphasizes BoA and ICBC (6.7% each), reflecting a neutral-to-cautious tone on the systemic risks of Chinese property defaults, but with a slight lean toward China's lenders facing quicker distress due to higher direct exposure. It implies U.S. banking portfolios would be affected later via global financial ties rather than immediate collapse.

Perplexity equally weights BoA and ICBC (2.7% each) with a neutral tone, focusing on institutional exposure as the key factor, yet subtly indicates that China's lenders are at greater initial risk due to localized economic dependencies. U.S. banks, while interconnected, are seen as having more insulation against immediate fallout.

Gemini balances focus on BoA and ICBC (2.7% each) with a neutral tone, suggesting that while both are at risk, China's lenders are more immediately vulnerable due to their direct ties to the property sector like Evergrande (0.7%). It positions U.S. banking portfolios as likely to experience delayed ripple effects through international exposure rather than direct collapse.

Gemini shows a slight lean towards Chinese banks with state backing (China and Industrial and Commercial Bank of China at 2% and 2.7% visibility) over U.S. entities like BoA (2.7%), emphasizing state intervention as a stabilizing force post-shock, with a neutral sentiment tone.

Perplexity remains neutral with equal visibility for BoA and Industrial and Commercial Bank of China (both at 2.7%), suggesting no clear favoring, but implies Chinese banks might recover faster due to implicit state guarantees, maintaining a balanced tone.

Deepseek slightly favors U.S. banks like BoA (2.7%) over Chinese entities (China at 0.7%), focusing on market discipline as a driver for quicker recovery through adaptability, with a mildly positive tone towards U.S. institutional mechanisms like the FDIC and Federal Reserve.

Grok displays a balanced view with strong visibility for both Chinese banks (Industrial and Commercial Bank of China at 2.7%, Bank of China at 2%) and U.S. banks (BoA at 2%, JPMorgan Chase at 2%), but leans towards Chinese banks for faster recovery due to state backing, with a neutral to positive tone on institutional support on both sides.

ChatGPT shows a strong focus on both U.S. (BoA at 9.4%, FDIC at 4.7%) and Chinese banks (Industrial and Commercial Bank of China at 9.4%), but favors Chinese banks for post-shock recovery due to state-driven resource mobilization, adopting a positive tone towards centralized stability.

ChatGPT shows a balanced visibility share between U.S. banks like BoA (9.4%) and Chinese state banks like Industrial and Commercial Bank of China (9.4%), but its higher total questions (14) suggest a deeper focus on U.S. banks’ diversified portfolios as a buffer against sectoral defaults, with a neutral sentiment tone.

Deepseek favors U.S. commercial banks slightly with mentions of BoA (2.7%) and JPMorgan Chase (1.3%), over Chinese banks like Industrial and Commercial Bank of China (2.7%), implying a perception of stronger risk distribution in U.S. systems, with a neutral to positive tone on their resilience to sectoral shocks.

Perplexity evenly splits visibility between BoA (2.7%) and Industrial and Commercial Bank of China (2.7%), indicating no clear preference, but its neutral tone suggests U.S. banks may have a marginal edge in perceived diversification due to more varied institutional mentions.

Grok leans toward U.S. banks with higher visibility for BoA (2.7%), JPMorgan Chase (2.7%), and Wells Fargo (2.7%) compared to Chinese banks, reflecting a positive sentiment that U.S. systems are better equipped for sectoral diversification to mitigate defaults.

Gemini equally represents BoA (2.7%) and Industrial and Commercial Bank of China (2.7%), but its inclusion of U.S.-centric entities like FDIC (1.3%) suggests a slight tilt toward U.S. banks’ diversified exposure as a safety net against sectoral defaults, with a neutral sentiment tone.

Gemini shows a balanced focus on both Chinese and U.S. entities like Evergrande (0.7%) and Federal Reserve/BoA (2.7% each), with a neutral tone suggesting equal concern; its reasoning implies Chinese banks’ property exposure (via Evergrande) poses significant risk but lacks depth on U.S. consumer debt specifics.

Grok leans toward highlighting Chinese credit risk through mentions of Evergrande (0.7%) and China (2%), with a skeptical tone on systemic issues; it contrasts this with U.S. banks like BoA (2.7%) and Federal Reserve (2.7%), suggesting less acute risk from consumer debt due to stronger institutional oversight.

ChatGPT assigns equal high visibility to BoA and Industrial and Commercial Bank of China (8.1% each), with a neutral-to-skeptical tone on both; it emphasizes Evergrande (2%) as a specific risk factor for Chinese banks, implying heavier credit risk from property ties compared to U.S. consumer debt exposure.

Deepseek maintains a neutral tone with equal focus on BoA, Industrial and Commercial Bank of China, and Federal Reserve (2% each); it lacks specific risk indicators but suggests no clear bias, implicitly treating U.S. and Chinese credit risks as comparable without deeper reasoning on property or consumer debt.

Perplexity equally highlights BoA and Industrial and Commercial Bank of China (2.7% each), with a slight nod to Chinese risk via Evergrande (0.7%) and a neutral tone; it suggests Chinese banks face more structural credit risk from property exposure compared to U.S. banks’ broader debt profiles.

ChatGPT shows a balanced focus on both China and U.S. entities like BoA and Federal Reserve with higher visibility shares (7.4% and 2.7% respectively), but includes international oversight bodies like IMF (1.3%), suggesting concern over systemic risks in China's shadow banking. Its tone remains neutral, emphasizing regulatory and institutional perspectives over explicit risk amplification.

Gemini leans slightly toward U.S. consumer finance with entities like BoA (2.7%) and FICO (0.7%), but highlights Evergrande (0.7%) as a specific risk factor in China, indicating shadow banking concerns. Its tone is skeptical, pointing to isolated but significant credit risk triggers in China compared to more regulated U.S. structures.

Perplexity maintains equal visibility for BoA and Industrial and Commercial Bank of China (both 2.7%), with a neutral tone that lacks explicit risk differentiation. Its focus on SEC (0.7%) suggests a marginal emphasis on U.S. regulatory oversight, implying less concern for U.S. consumer finance credit risk.

DeepSeek prioritizes U.S. entities like BoA (2.7%) and Consumer Financial Protection Bureau (2%), with a neutral tone reflecting confidence in U.S. regulatory frameworks over China's shadow banking risks. Its equal focus on Industrial and Commercial Bank of China (2.7%) does not emphasize heightened credit risk in China.

Grok places notable emphasis on China (2.7%) and Evergrande (1.3%) alongside IMF (2.7%), signaling significant concern for credit risk amplification in China's shadow banking sector due to opacity and potential contagion. Its tone is skeptical, contrasting with a more stable perception of U.S. entities like Federal Reserve (2.7%) and FDIC (2%).