In previous papers, we addressed the low correlation of Chinese yields with G7 yields, since the global financial crisis (GFC), and notably during the COVID-19 crisis, and how China’s inclusion into the World Government Bond Index (WGBI) may increase this correlation. A related, but different, issue is why Chinese government bond yields remain well above G7 yield levels, particularly as Chinese government bond yields were lower than US Treasury yields in the early-2000s. In this paper, we explore several factors that have caused Chinese government bond yields to stand well above G7 yields, particularly since the GFC.