I KNOW HOW THEY FEEL: Trillions in Hidden Debt Drove China’s Growth. Now It Threatens Its Future. “As much as $800 billion of that debt is at a high risk of default, economists say. If the financing vehicles can’t meet their obligations, Beijing could either pay for bailouts, which might create a bigger problem by encouraging unsound borrowing. Or it could allow insolvent funding vehicles to go belly up, exposing Chinese banks to serious losses and potentially spurring a credit crunch that would further erode economic growth.”
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