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Why China’s Coronavirus Debt Crisis Is A Problem
China is not going to be the next Argentina and Venezuela. But its debt load, already high for an emerging market, is even higher due to the coronavirus. As an emerging market, which China likes to remind the world that it still is, China is the most indebted. When you don’t own at least one of the world’s most used currencies, then it becomes harder to finance those debts. Will it all just go away? Excessive debt is usually held up as one of the reasons to be bearish China. That was the case in a pre-trade war pre-pandemic world, and it is still the case now. China knew the U.S. investor was c