A Threat to China’s Economy

<p>Every once in a while a company grows so big and messy that governments fear what would happen to the broader economy if it were to fail. In China, Evergrande, a sprawling real estate developer, is that company.</p><p>Evergrande has the distinction of being the world’s most debt-saddled property developer and has been on life support for months. A steady drumbeat of bad news in recent weeks has accelerated what many experts warn is inevitable: failure.</p><p>But will the government let the company fail? And what would happen if it did?</p><p>Guest: <a href="https://www.nytimes.com/by/alexandra-stevenson">Alexandra Stevenson</a>, a business correspondent based in Hong Kong covering Chinese corporate giants.</p><p><i>Love listening to New York Times podcasts? Help us test a new audio product in beta and give us your thoughts to shape what it becomes. Visit </i><a href="http://nytimes.com/audio"><i>nytimes.com/audio</i></a><i> to join the beta.</i></p><p><a href="https://www.nytimes.com/newsletters/signup/NTTD?smid=pc-thedaily">Sign up here</a> to get The Daily in your inbox each morning. And for an exclusive look at how the biggest stories on our show come together, <a href="https://www.nytimes.com/newsletters/the-daily?module=inline">subscribe to our newsletter</a>. </p><p>Background reading: </p><ul><li>The property giant’s success mirrored the country’s transformation from an agrarian economy to one that embraced capitalism. Its struggles offer a glimpse of<a href="https://www.nytimes.com/2021/09/28/business/china-evergrande-economy.html"> a new financial future</a>.</li><li>Evergrande isn’t the only Chinese real estate developer in trouble — another, Fantasia Holdings Group, recently<a href="https://www.nytimes.com/2021/10/05/business/chinese-developer-missed-payment.html"> missed a key payment</a> to foreign bondholders, heightening the persistent fears of a coming crisis in China’s real estate sector.</li></ul><p>For more information on today’s episode, visit <a href="http://nytimes.com/thedaily?smid=pc-th