Chinese companies have racked up $14.2 trillion in debt—more than any other country on the planet | Quartz


As Chinese companies expanded their ability to produce—building new factories, buying more land, and the like—they created a excess of supply that began to drive down prices. Then the slowing economy hurt cash flows even more.

But instead of letting companies default, leaders kept pumping more money into the system, in part through official channels, though also by allowing China’s off-balance-sheet credit system—better known as “shadow banking“—to flourish.

via Chinese companies have racked up $14.2 trillion in debt—more than any other country on the planet – Quartz.

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