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Corporate China to face a rush of defaults in 2019

Increased pressure on state-owned 'zombies' risks disrupting global supply chains

TOKYO -- China is bracing for another wave of business failures this year, as companies fall victim to the slowing economy and unresolved trade tensions with the U.S.

Insolvencies will rise 20% in 2019, trade credit insurer Euler Hermes predicts -- far exceeding the global rate of 6%. This comes on top of last year's 60% jump in the country, where economic growth has reached the lowest in a decade.

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