Regardless of whether China does it, bailing out the debtees and letting the debtor fails is what other countries should do in the future.
Sometimes that’s what you want to do and you trigger a lehman.
No one really knows where the trigger line for systemic with these things is. Hence the weird financial regulations like Dodd-frank in US, MiFID in EU etc
edit: apparently littlestymaar and I are operating on the same wavelength this morning.
Of course one can create two companies, make the first borrow from the second, make the second hide the money and default, get the first bailed out and pocket the hidden stash.
But they'll be easier to go after.
Iif you think of companies as “agents”. But they are not, the agent causing the default is the human in charge. And those aren't often suffering a lot from their mistakes…