China didn’t build an economic miracle. It built the world’s biggest debt experiment. And experiments don’t last forever

China’s growth model looks increasingly like an illusion powered by debt.

The share of loss-making industrial firms is at record highs.

More debt. More factories. More capacity. Debt can build factories. It can’t create demand though. https://t.co/yXQhaD0bxo pic.twitter.com/HKlmkL8e0D

— Michael A. Arouet (@MichaelAArouet) June 11, 2026