Moody’s warned that Beijing would need to bail out local and regional governments and state-owned enterprises that were struggling with rising debts, hampering efforts to boost investment and growth.
The USA does this all the time and it’s considered great and wise domestic policy
The USA does this all the time and it’s considered great and wise domestic policy
I’m not sure I’d say it’s the same. The US bails out the revered private corporation. Moodys is one hundred percent on board with that.
With SOEs and governments there’s no major shareholders who stand to win, so there’s no reason for a bailout by their logic.