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[Anjani Trivedi] Dollar squeeze coming for China Inc.
[Anjani Trivedi] Dollar squeeze coming for China Inc.
ViewpointsMar 27, 2020
Pummeled by the coronavirus, China Inc. now faces another disruption: a global shortage of dollars. Chinese companies are looking at $120 billion of debt repayments this year on their US dollar denominated debt. Real estate developers and industrial companies make up three-quarters of the outstanding $233 billion of junk-rated bonds. There’s another $563 billion of higher-rated debt. The question isn’t just whether they’ll be able to pay their debt. It’s worth wondering