First, to soften the headline: of course China’s economy is going to survive. That said, this video is a good explainer on both how the Evergrande default is currently affecting the economy and possible future effects. My take is that it will likely hurt in the short term, but this was a nearly inevitable consequence of overleveraged entities in the Chinese economy. My biggest concern would be for people who put their life savings into Evergrande expecting a home to be built and local governments that might be pushed towards austerity in social services.