Commentary After dithering for months, Beijing has made its intentions explicit. It will execute a plan to deal with the Evergrande threat to China’s financial system and by extension to the global financial system. There was action a couple of weeks ago, hinted at Beijing’s hand, when a state-owned enterprise paid a handsome sum for Evergrande’s interest in a commercial bank. The payment enabled Evergrande to avoid a formal declaration of default by delivering an already late interest payment on its dollar-denominated debt. But that was only a hint. Now Beijing has issued a comprehensive set of steps to engage the Evergrande problem and no doubt future problems from others like it that will surely follow. In the infinite detail of this new plan, Beijing effectively proposes a staged bankruptcy for the massive real estate developer and burgeoning conglomerate. In it, Beijing will supervise the sale of Evergrande assets—largely to …