China’s Economy - Addicted to Debt?

Much of China's recent economic growth has been financed by debt, particularly bank loans. When the global economic slowdown bit, China responded with a massive programme of infrastructure investment that was funded through debt. The FT video below examines the implications of this approach.

Debt is starting to take a toll on China, its people and businesses. So long as China was able to grow incredibly quickly, China was able to finance its debt. However, it might prove harder to sustain that as China's economy enters a period of slower growth.