Athens, China
Many factors may be pushing China’s economy in the direction of overheating, and one of the most worrying fueled the crisis in the eurozone: mushrooming public debt. But, while the problem in the eurozone is member countries’ sovereign debt, in China the threat stems from local government borrowing.
BEIJING – While parts of the world are dealing with the aftermath of the financial crisis or an emerging sovereign-debt crisis, China is coping with the risk of overheating and/or an asset bubble.