Every once in a while a company grows so big and messy that governments fear what would happen to the broader economy if it were to fail. In China, Evergrande, a sprawling real estate developer, is that company.

Evergrande has the distinction of being the world’s most debt-saddled property developer and has been on life support for months. A steady drumbeat of bad news in recent weeks has accelerated what many experts warn is inevitable: failure.

But will the government let the company fail? And what would happen if it did?

Guest: Alexandra Stevenson, a business correspondent based in Hong Kong covering Chinese corporate giants.

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Background reading:

• The property giant’s success mirrored the country’s transformation from an agrarian economy to one that embraced capitalism. Its struggles offer a glimpse of a new financial future.
• Evergrande isn’t the only Chinese real estate developer in trouble — another, Fantasia Holdings Group, recently missed a key payment to foreign bondholders, heightening the persistent fears of a coming crisis in China’s real estate sector.

For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.



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