Confronted by the 2008 global financial crisis, China unleashed an unprecedented economic stimulus package that included rapid growth in credit from the state banking system to enterprises and local governments. No other developing country has amassed as much debt as quickly. And in other countries, large increases in debt have usually been followed by sharp growth slowdowns, and many ended in crisis. Is China’s debt bomb likely to explode? Is its decelerated growth rate still too rapid? Is there a cure for China’s debt addiction?
Ruchir Sharma answered these questions. Carnegie’s Yukon Huang commented, and Vikram Nehru moderated.
Ruchir Sharma is head of Emerging Markets and Global Macro at Morgan Stanley Investment Management. He joined Morgan Stanley in 1996 and has 21 years of investment experience. Sharma was a contributing editor with Newsweek and frequently writes essays for publications including The Wall Street Journal, Financial Times, New York Times, Foreign Affairs, and Time. He is the bestselling author of Breakout Nations: In Pursuit of the Next Economic Miracles.
Yukon Huang is a senior associate in the Carnegie Asia Program, where his research focuses on China’s economic development and its impact on Asia and the global economy.
Vikram Nehru is a senior associate in Carnegie’s Asia Program. His research focuses on the economic, political, and strategic issues confronting Asia, particularly Southeast Asia.