The Briefing Room
General Category => World News => Topic started by: To-Whose-Benefit? on February 12, 2019, 01:52:05 pm
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Reuters
Shu Zhang February 11, 2019
[excerpt]
https://www.reuters.com/article/us-china-economy-debt/debt-guarantee-tangle-chinas-private-firms-hit-by-default-contagion-idUSKCN1Q107W (https://www.reuters.com/article/us-china-economy-debt/debt-guarantee-tangle-chinas-private-firms-hit-by-default-contagion-idUSKCN1Q107W)
SINGAPORE (Reuters) - The collapse in China of a complex web of debt guarantees involving several private firms highlights risks in its financial system and opens up a potentially hazardous front for an economy in the grip of its slowest growth in nearly three decades.
It is the last thing Beijing needs as it tries to fight off intensifying pressure on growth from a months-long trade dispute with the United States. Yet, as the government steps up economic support measures and moves to loosen gummed-up funding, it might be inadvertently inflaming financial risks with its call on state banks to sharply boost lending to the private sector.
The warning bells are already sounding in the once-prosperous eastern city of Dongying, a hub for oil refining and heavy industry in Shandong province. Here, at least 28 private companies are seeking to restructure their debts and avoid bankruptcy, mainly due to souring loans that they guaranteed for other firms, court rulings seen by Reuters show.
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"an economy in the grip of its slowest growth in nearly three decades."
Someone want to tell me Again how these thieving punks are So Big that tariffs from us will only hurt the US, because China can laugh them off?
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China got so used to screwing us that they never imagined what would happen if it stopped.