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Opinion

China's bill for debt binge coming due

Yuan flashes warning signs amid slowing economy and widening trade war

| China
The yuan's decline is making it more difficult for Chinese borrowers to repay overseas debts.   © Reuters

The 2008 "Lehman shock" is finally catching up with China.

Beijing beat the odds for a decade, with the Chinese economy growing at above 6.5% year after year. It managed that feat with an epic explosion of credit and debt at government and corporate levels. The latter, for example, surged toward 170% of gross domestic product, from 101% in 2008. Corporate America's ratio, by comparison, is about 73%.

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