China Debt Surge Echoes Japan Slowdown Pattern, Chanos Says

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  • Debt relative to GDP repeating pattern before lost decade
  • China has made `missteps' in handling stock market meltdown

Jim Chanos, founder of Kynikos Associates Ltd.

Photographer: Scott Eells/Bloomberg

China is on a path similar to the one that preceded Japan’s lost decade in the 1990s as the country’s debt level grows twice as fast as its economy, according to Jim Chanos, the hedge fund manager who predicted the 2001 collapse of Enron Corp.

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