From a CNN article:
“...The Shenzhen-based developer, with total liabilities of 2.39 trillion yuan ($333 billion) at the end of June last year, filed for bankruptcy in New York in 2023.
Overseas creditors are owed $25 billion, the Hong Kong court document showed...”
Less than 10% is owed to foreigners. I would imagine a big chunk of the rest is Hong Kong, but in any case, China is a communist country, so they can figure out ways to smooth this over without really following Western business practices.
I understand what you are saying, but billions of US companies are invested in China and any kind of liquidity crisis will flow over.
Again, this is just the end of a long death process. One would hope those companies have “adjusted.”