Putting paid to Chinese debt myths

Concern over the size of China's debt is sometimes played down by pointing to the value of its assets. In reality, China will never liquidate assets to pay down debt.

Tom Orlik had an interesting article in the Wall Street Journal about Chinese debt, in which he cites analysts who argue that because the government has assets that exceed the liabilities, we should be less concerned about the size of the debt. It’s a short article worth citing in full because, I think, it demonstrates a number of popular misconceptions:

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