Secretary of State Antony Blinken has urged China to “act responsibly” in handling the debt crisis of real estate developer China Evergrande Group, warning that the effect of Beijing’s decisions will resound around the world. Evergrande, which has more than 1,300 housing projects in about 280 cities, is now the world’s most heavily indebted developer, with more than $300 billion of debt. Fears of Evergrande’s 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 the United States’ worst economic disaster since the Great Depression 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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