Feb. 5 (Bloomberg) -- Non-performing loans in China have risen into the “trillions of renminbi” because of poor lending practices, an insolvency lawyer said.

“We work really closely with SASAC, the state-owned enterprise regulator in China, and there are literally trillions and trillions of renminbi of, frankly, defaulting loans already in China that no one is doing anything about,” Neil McDonald, a Hong Kong-based business restructuring and insolvency partner with Lovells LLP, said at an Asia-Pacific Loan Market Association conference yesterday. “At some point there’s going to be a reckoning for that.”

I am amazed at the number of people sucked into the "China Story", about how undervalued the RMB is, and what amazing growth China has. The real story is China is a command economy, printing trillions of RMB, funding numerous apartment complexes, malls, and even entire cities where no one lives.