China Faces a Debt Crisis. Or Does it?

When it comes to analyzing China's economy, few topics polarize views like the nation's debt levels.

By some accounts, borrowing is out of control and has the country teetering on the edge of a crisis. Others point to the nation's long list of assets, which can more than offset any funding crunch. An example of the opposing views was on display when two separate April 5 research reports each cited the risk of a "Minsky moment" (a collapse in asset prices following the exhaustion of credit expansion) but both came to very different conclusions.