China At Risk of Greek-Style Crisis

Parts of the world are dealing with the aftermath of the financial crisis or an emerging sovereign-debt crisis but China is coping with the risk of overheating and an asset bubble. Many factors may be pushing China’s economy in this direction. One of the most worrying is the same which fuelled the current crisis in the euro zone: mushrooming public debt. In the euro zone, the problem is member countries’ sovereign debt; in China, the problem is borrowing linked to local governments.