What you’re ultimately seeing is the death of the Bretton Woods- Petrodollar based system from which every country has been apart of.

A debt jubilee will come in the form of a new Bretton Woods where major players like China and U.S. will resettle debts and establish a new pecking order based on a chosen reserve currency. (Gold or Bitcoin)

Bear in mind that a Chinese debt collapse is actually an existential threat to the U.S. which could spell the end of a dollar reserve system.

However, China has proven repeatedly to reestablish themselves throughout history more than any other country. Let’s put this under the Lindy Effect.

The economic foibles you reference are derivatives or micro analyses. If you integrate the macro trends, you’ll see that China is poised to assume hegemony in 10-20 years akin to U.S. taking the reigns from the U.K.

Reference Ray Dalio’s “The Changing World Order”. Given Bridgewater’s success as the largest and most influential hedge fund globally, I’d put my money their analysis that China is likely to supersede.