China Government Taking on More Risk, Says Darby

The transcript discusses the prediction of non-financial sector debt reaching 300% of GDP by 2022, highlighting the shift of financial risks from the equity market to the government balance sheet. It examines China's unique debt situation due to its high savings rate and closed capital account, comparing it to past scenarios in Europe and the US. The challenges of achieving a soft economic landing in China are also explored, noting past attempts to control credit and their impact on growth.

In what ways is the situation in China different regarding debt and economic risks?

What challenges did China face when trying to rein in credit and cut capacity?