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This has been made possible by Chinese banks keeping “zombie firms” alive through repeated loan rollovers, creating a deflationary spiral across the economy. Read more about how China's banks function as a policy tool:
rhg.comThe Banks Behind the China ShockBeijing has not delivered on its promised reforms to its banking system, but has instead tightened control over banks and molded them into policy tools, imposing consequences on both China's economy a...
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