The Chinese government does the same as the management of Enron. They create special purpose entities (in special economic zones SEZs) and transfer liabilities like bad debt there. This makes the current and the capital account of China look better than it really is.
Plus, they "print" money like hell (even worse than ECB or Fed), but which is not that transparent.

With that money, among other things, ghost cities are built (to keep people in employment) https://www.globalresearch.ca/china-ghost-cities/5421229.

I really think this is the biggest bubble ever and a matter of months (or few years) to blow up.

Militarily they are dangerous for their neighbors, but will never be able to compete with the US.