Opinion Piece: China’s overseas lending needs a full-fledged debt restructuring
China finds itself in a similar predicament as Japan in the 1970s, when the latter was a major lender to the Latin American countries which eventually suffered a major debt crisis in the 1980s. Now a major lender to various developing countries, especially after Covid, China’s apparent approach of kicking the can down the road means that time bombs of massive defaults are waiting to go off.
Bruegel Senior Fellow Alicia García-Herrero analizes the rapid growth of the Chinese economy during the last few decades and China’s position towards sovereign restructuring.
