Summary of Resolving China’s Corporate Debt Problem

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

Resolving China’s Corporate Debt Problem summary
Start getting smarter:
or see our plans




  • Analytical
  • Innovative


Intended to fuel domestic investment in the aftermath of the 2008 financial crisis, China’s corporate credit boom has instead led firms to lackluster performance and poor-quality investments. According to this incisive report from IMF experts, China’s policy makers and bankers must execute a disciplined growth strategy that, in the longer term, will benefit the Chinese economy. That includes creating frameworks for deciding which troubled companies to rescue and which to abandon, along with overhauling capital markets to promote more efficient investment. getAbstract recommends this rigorous analysis to economists, policy makers, financial executives and China watchers.

About the Authors

Wojciech Maliszewski et al. are economists and analysts at the International Monetary Fund.



The global recession that followed the 2008 financial crisis reduced China’s external trade. GDP growth since then has rested significantly on internal demand, driven by corporate credit that expanded at a rate of 20% annually, on average, from 2009 to 2015. The continuation of this trajectory has become problematic. China’s business sector has acquired outsized levels of indebtedness, which has produced some growth. But investment inefficiencies and subpar profit performance have ensued. Such rapid debt growth has historical precedents: Other economies that experienced swift and steep increases...

More on this topic

By the same authors

China’s Growing Influence on Asian Financial Markets
Assessing China’s Corporate Sector Vulnerabilities

Customers who read this summary also read

Watch Out World, Here Come Chinese Government Bonds
Opening Plenary with Xi Jinping, President of the People’s Republic of China
Cracking the Emerging Markets Enigma
The American Economy
Rebalancing a Lopsided Global Economy
The China-U.S Trade War and Future Economic Relations

Related Channels

Comment on this summary