The close relationship between China’s borrowing and exports means Beijing will still depend on global growth staying strong if it is to win its battle against excessive leverage.
In the dark winter of late 2015, Beijing’s reputation for economic management was in tatters thanks to a colossal stock market crash, currency devaluation, and predictions of financial Armageddon.
Two years later, its reputation looks to have been restored: Chinese markets and the economy have rebounded, and most impressively, the nation’s enormous corporate debt has fallen as a percentage of gross domestic product for the first time since 2011….
