Dollar & Sense: The Brookings Trade Podcast cover image

Making sense of China’s economy

Dollar & Sense: The Brookings Trade Podcast

CHAPTER

The Debt Problem in China

Tao: I think China's debt problem is very serious, but not necessarily in the ways that a lot of people think. There are mismatch issues and certain sectors like local government, certain corporate sector just have too much debt. The risk of a bank run or basically pulling the plug of liquidity is very low. And we haven't seen really that happen apart from at the edges.

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