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China's Debt Addiction | FT Business

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Until five years ago China's economy relied remarkably little on debt. But China lost its debt inhibition in late 2008 when the global financial crisis erupted. With growth slowing sharply and 20 million people losing their jobs overnight, the government unleashed a giant stimulus that was powered almost entirely by bank loans. The debt genie was out of the bottle -- and it has been extremely difficult since then for China to stuff it back in. The FT's Simon Rabinovitch reports from Guiyang.

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► Martin Wold on Global Debt Overhang: http://bit.ly/1Ljl65E

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