The Enigma of China’s Debt Crisis

The Enigma of China’s Debt Crisis

China’s economic growth trend, which continues to stall, has become an important and attractive research topic for economists worldwide. Since Q3 of last year, China’s central government has begun to launch a series of fiscal and monetary policies in order to stimulate the economy to get back on track. Amongst all of the policies, the most striking is the “debt reduction plan” of up to 10 trillion yuan (1.36 trillion US dollars). The Chinese gov…