Chinese economic slowdown is a result of debt supercycle | Kenneth Rogoff

Some blame falling global demand, but borrowing by government and property sector has held back growth

• China cuts key interest rate amid economic slowdown

The 2008 financial crisis in the US kicked off a debt supercycle, which spread to Europe in 2010 and has recently engulfed many of the world's low-income and lower-middle-income countries. Could the debt woes of Country Garden, the behemoth Chinese real estate developer now facing billions of dollars in losses, augur the cycle's next turn?

The answer remains unclear. While the Chinese authorities have a remarkable track record when it comes to containing economic crises, the challenges posed by a significant growth slowdown, combined with high debt levels - especially for local governments and the property sector - are unprecedented.