China's borrowing binge

According to The Economist, "China has been on a borrowing binge. Its total debt—the sum of government, corporate and household borrowings—has soared by 100% of GDP since 2008, and is now 250% of GDP; a little less than wealthy nations, but far higher than any other emerging market (see article)."

If The Economist is correct, China should not take the view that firms are too big fail or they might face years of stagflation and deflation.

I agree China should follow the opposite course that America took in 2008.