China is trying frantically to keep its economy humming. But even without COVID and the Trade war, it would be in dire straits. And this filters through to all sectors of the economy. One can only build so many crumbling ghost cities. One can only store so much oil and produce so much steel that stacks up before something gives. And the longer the rot lasts, the harder the eventual disintegration will be. China is the mother of all Ponzi schemes and no matter how much band-aid its many open wounds get, for every one economic wound that gets taken care of, three more open up.
Yet another Chinese oil firm has defaulted, with the total value of defaults in the country’s offshore bond market reaching $4 billion this year