When a $300 billion company was about to collapse, Beijing let it die. The U.S. has never made that choice. In August 2020, the Chinese state handed its twelve largest property developers three simple balance sheet ratios. If you failed all three, you couldn't take on any new debt. Evergrande failed all three. Within eighteen months, the company was insolvent. By January 2024, a Hong Kong court ordered the largest corporate liquidation in Chinese history. Real estate made up 25 percent of China'
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When a $300 billion company was about to collapse, Beijing let it die. The U.S. has never made that choice. In August 2020, the Chinese state handed its twelve largest property developers three simple balance sheet ratios. If you failed all three, you couldn't take on any new debt. Evergrande failed all three. Within eighteen months, the company was insolvent. By January 2024, a Hong Kong court ordered the largest corporate liquidation in Chinese history. Real estate made up 25 percent of China'
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