The China debt level has exploded.
We are 10 years on from the beginning of the credit crisis. And we are seeing many of the same signs of hubris that were present then. However, one thing that is definitely different is the shadow that China debt now casts over the global economy.
The growth in Chinese debt levels is drowning out progress made in other countries. Other countries have as a group reduced their debt levels.
No other emerging market has reached such extraordinary levels of debt. Chinese institutions and investors are mostly amateurs when it comes to investing in unproductive assets. Default rates are kept artificially low as extend-and-pretend lending is commonplace. A generation of investors have seen nothing but good times and only fear missing out on more.