U.S. Secretary of State Antony Blinken on Oct. 6 urged China to “act responsibly” in handling the debt crisis of real estate developer China Evergrande Group, warning that impact of Beijing’s decisions will resound around the world. Evergrande, which has more than 1,300 housing projects in some 280 cities, is now the world’s most heavily indebted developer, with more than $300 billion in debt. Fears of its imminent collapse has triggered a market sell-off and invoked speculation that it would lead to a “Lehman moment”—the idea that the crisis in one large company could send shock waves around the world. When Lehman Brothers filed for bankruptcy in 2008 it had a contagion effect on other major financial institutions, triggering America’s worst economic disaster since the Great Recession and a global market meltdown. “China has to make sovereign economic decisions for itself, but we also know that what China does economically …
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