China’s economy has achieved astonishing growth over the past three decades, but it may be undergoing its most serious test of the reform era. In his newly published book, “China’s Guaranteed Bubble,” Ning Zhu argues that implicit Chinese government guarantees, which have helped drive economic investment and expansion, are also largely responsible for the challenges the country now faces. As growth slows, corporate earnings decline, and lending tightens for small and medium-sized businesses, the leverage ratios of China’s government and its corporations and households all have increased in recent years. How desperate is China’s debt situation, and what can be done to avert a major crisis?

On July 11, the John L. Thornton China Center at Brookings will host Ning Zhu, deputy dean and professor of finance at the Shanghai Advanced Institute of Finance, Shanghai Jiaotong University. Zhu will present key findings from his research into Chinese sovereign, corporate, and household debt, and also introduce potential remedies to return China to the path of long-term sustainable growth. Following the presentation, Senior Fellow David Dollar will moderate a discussion with Zhu before taking questions from the audience.

 Follow @BrookingsChina to join the conversation.

Event Agenda

Introduction

Cheng Li

Director, John L. Thornton China Center

Senior Fellow, Foreign Policy

Presentation

Ning Zhu

Deputy Dean

Professor of Finance

Shanghai Jiaotong University

Moderator

David Dollar

Senior Fellow, Foreign Policy, Global Economy and Development, John L. Thornton China Center

@davidrdollar