Non-performing Loans in China: a Potential Win-Win Opportunity for Foreign Investors and China's Economy

Facing a potential economic crisis due to outstanding non-performing loans (NPL), China is in desperate need of economic reform. By allowing foreign investors to purchase NPL porfolios, the country is moving in the right direction to stabilize and revitalize the economy. James H.M. Sprayregen, Jonathan Friedland, and Chuan Li discuss the risks of NPL's to China's economic stability, and examine the options for economic reform.