Washington is Getting China Wrong

Source: The Atlantic
by Michael Schuman

“Evergrande group, one of China’s largest property developers, is tottering on the brink of bankruptcy. … Around the world, financial analysts are wondering if Evergrande is China’s ‘Lehman moment,’ the starting gun for a destructive wave of defaults that could take down the nation’s banks and set back the country’s — and the world’s — already shaky recovery from the pandemic-induced economic downturn. All of that is reason enough to care about what’s happening at this otherwise little-known Shenzhen-based real-estate company. But Evergrande and the problems it faces tell an even more important and fundamental story about China and its future. The crisis exposes the deep, dangerous, and often unrecognized weaknesses in the Chinese economy that could derail its advance and, with it, Beijing’s quest to challenge American primacy on the world stage.” (10/11/21)