Episode Details

Andrew Collier and Gordon Chang: China's banking system faces a time bomb with an estimated $7.7 trillion in unreported bad loans, largely due to government-backed entities rolling over debt to mask insolvency. The property market remains a crater, and while manufacturing and tech sectors such as EVs are growing, they represent only a fraction of the GDP once provided by real estate. Xi Jinping resists bazooka stimulus programs, preferring state-led investment in high tech over consumer-driven growth. This has resulted in a K-shaped economy in which wealthy urbanites thrive while rural citizens face declining property values and job insecurity. Ultimately, China risks a multi-decade slump similar to Japan's lost decades. (5)
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