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When young debtors in China borrow without knowing the interest rates
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An alarming number of Chinese consumers are already defaulting on their debt.
PHOTO: QILAI SHEN/NYTIMES
Li Yuan
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China is a nation of savers. The Chinese government wants its people to spend more and save less. It also wants them to take on more debt, all for the sake of saving the economy from a four-year slump.
The national financial regulator urged banks in March to expand consumer lending and offer more flexible repayment terms. In July, policymakers promised to provide “innovative” financial services to boost consumption.
