China Has A Debt Problem Three Times Larger Than Evergrande
Economics Explained
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China Is a State Own Enterprise With 850 Billion Dollars in Debt That It Can't Repay
The rail lines can't increase their prices, because then people would just choose to fly or go back to the buses. So now china is looking at a state own enterprise with 850 billion dollars in debt that it can't repay. The government has already halted construction on any more high speed rail. If you try to sell off the network to pay down these loans, then any profit motivated company will only be interested in purchase the highly profitable routes between major cities. Alternatively, they could just close down the railways, but that would leave hundreds of thousands of workers without a job and destroy one of the greatest symbols of china's economic success over the past two decades.
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