China Faces Debt Crisis as More State-owned Enterprises Default on Loans

A worker, seen holding his hard-hat, walks toward to a construction site in Beijing on Jan. 23, 2019. - China's economy grew at its slowest pace in almost three decades in 2018, losing more steam in the last quarter as it battles a massive debt pile and a U.S. trade war. WANG ZHAO/AFP via Getty Images

News Analysis

The debt crisis of China’s state-owned enterprises (SOEs) has been deepening since 2020. Beijing has recently issued a report to address the issue as several SOEs have defaulted on loans in recent months.