Apr
25
Debt Crisis Shakes Chinese Town, Pointing to Wider Problems
BySHANGHAI — In China, it’s all about whom you owe.
That precise question — who owes what to whom? — shook the Chinese industrial town of Zouping in recent weeks. Some businesses closed. City officials engineered a desperate corporate takeover. An executive was detained by the police.
The problem: Local companies had agreed to guarantee hundreds of millions of dollars of one another’s loans. When some of those loans went bad, the impact rippled across the city…
Debt Crisis Shakes Chinese Town, Pointing to Wider Problems
