China is going through a systemic debt crisis due to lack of liquidity, according to China expert and author Gordon Chang.
Chang pointed to a number of banks in China’s north-central Henan Province that reportedly did not allow 400,000 depositors to withdraw money, saying “The [Chinese Communist] Party right now has no economic answers. The country as a whole is in too much debt. And so this is an issue going forward.”
He pointed out that a similar situation had occurred in Shanghai as well.
“Shanghai banks have severe restrictions on the amount of withdrawals. It’s technically not a default, in a sense. But people are not able to get access to their money,” he said….