And Michael Pettis (Chinese Financial Markets) pens a piece that says what I believe also to be the more accurate truth about debt, and debt servicing, particularly as it relates to advancing further borrowing and then (mis)reallocating the capital. The can kicking scenario continues ... for now.
A couple of excerpts from Michaels post below:
" ... the unstable and self-reinforcing relationship between underlying conditions and debt servicing costs."
"Fiscal reform in China can only be successful, in this context, if it eliminates loss-making investment activities, and unfortunately I see it doing nothing of the sort."
"If the problem is that China is keeping growth high only or mainly by borrowing and misallocating the proceeds, then hidden losses are rising and one way or another the bad debt must be resolved."