BELLINGS

China is collecting on old debts but won’t pay its own

China’s leaders are working to recoup hundreds of billions of dollars worth of unpaid taxes. At the same time, the country is defaulting on a significant obligation.

China’s leaders are working to recoup hundreds of billions of dollars worth of unpaid taxes. At the same time, the country is defaulting on a significant obligation.

BELLINGS Intelligence Score: 82

Why it matters

China defaulting on a significant obligation amid efforts to collect old debts signals a major sovereign credit event with systemic implications for global credit markets and risk assessments, especially given the current crisis regime.

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