China’s $9 Trillion Debt Problem Is A Global One, Too

 

Article by William Pesek

 

Economists wondering where China’s economy is heading have a Lehman Brothers problem on their hands.

 

Too often, analyses on the more than $9 trillion of debt that state banks and other creditors are owed by China’s local government investment arms are framed around a 2008-like crisis. Blame it on breathless speculation about the “Lehman moment” many believe is sure to devastate Asia’s biggest economy.

 

The common thread is a realization that a Chinese model that worked so well for three decades is facing an existential crisis. Even if China doesn’t plunge into a crisis that shakes the globe, the rapid growth needed to surpass the U.S. economy by 2030 or 2040 seem over.

 

https://www.forbes.com/sites/williampesek/2023/09/15/chinas-9-trillion-debt-problem-is-a-global-one-too/?sh=4aded4ae19c7