What Is Driving China Toward a Balance Sheet Recession?

China’s economy is slowing. Amid weak borrowing, slack investment, deflationary pressures and uneven growth, the evidence points to China slipping into a "balance sheet recession"—a phenomenon our guest, Richard Koo, first diagnosed during Japan’s lost decades of the 90s, and then identified in the financial crises of both Europe and the U.S.

The former New York Fed official, who has consulted governments and testified in the U.S. Congress, has spent decades analyzing how economies recover—or fail to recover—from balance sheet recessions. Koo explores what China must do to avoid stagnation and lays out the stakes for global markets, trade, and investment.

The Call is a series of live video conversations featuring expert guests from the U.S. Chamber's Global Intelligence Desk. Live access to The Call is a benefit to the Chamber’s members; however, we are pleased to provide recordings of the calls for wider viewing thereafter.