China’s economy is slowing. Amid weak borrowing, slack investment, deflationary pressures and uneven growth, the evidence points to China slipping into a “balance sheet recession”—a phenomenon our guest, Richard Koo, first diagnosed during Japan’s lost decades of the 90s, and then identified in the financial crises of both Europe and the U.S. The former New York Fed official, who has consulted governments and testified in the U.S. Congress, spent decades analyzing how economies recover—or fail to recover—from balance sheet recessions. Koo explores what China must do to avoid stagnation, and lay out the stakes for global markets, trade, and investment. Here is a direct video link.