China is impervious to any amount of debt and should let it all default right away.  Normally if you are heavily in debt say you have a bad credit score, no one will want to lend to you.  However if you have a bad credit score and millions of people moving from poverty to the middle class and companies around the world want to sell to them... that is a different story altogether.  It is not like there is another market like China available.  China is the only growth market available, anywhere. Companies are so desperate to sell in China they have transferred all of their intellectual property to companies inside of China for the privilege even though it will destroy the companies in the long run.