China has one advantage, according to the Bridgewater founder: Most of China’s bad debt is denominated in yuan, with debtors and creditors often both being Chinese citizens. But even then, a debt restructuring will be tricky and politically charged as it will have huge effects on people’s wealth.

Ray Dalio said China is now at a “fork in the road” where it must either tackle its debt problem or face a period of “economic and psychological malaise”

Dalio echoed that warning on Tuesday, saying that China is now at a “fork in the road,” either choosing a “beautiful deleveraging” or letting the debt crisis lead to a Jap