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China’s crossroads on debt and growth

China is playing big. Basically they are at a crossroads: either they pull off a 'beautiful deleveraging' and restructure debt smartly, or they end up stuck like Japan did before their policy shift. Cutting down the bad debts while also stimulating growth through money and credit.

If they balance it right, China could clean up the mess without crashing the economy. They’ve got most of their debt in their own currency and owed to their own people, which helps. But it’s still a tough job - local governments and old companies are tangled in debt, and untangling that without political drama is hard.

Stay tuned 🍿

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