The United States thought the same thing and when through a housing crisis during 2008 and has been paying for it ever since with a frail economy and anemic growth. What China is doing now with Evergrande is exactly the approach the US took in 2008. Simply put, bad debt must be written off if you don't want to zomibify parts of your economy. Pretending that you can grow your way out of debt is fantasy as clearly evidenced by Japan and the US over the past 30 years. The fact that China has chosen to sweep this problem under the rug by rescuing Evergrande will be a drag on future growth and encourages future moral hazards. I don't predict doom and gloom for China, only that this will be a millstone around it's economic growth with additional systemic risk.

If an asset depreciates or isn't worth what you paid for it, refusing to write down the asset and take your medicine sooner rather than later just drags out the pain. Better to take your medicine and get the pain over with so your economy can quickly reallocate and quickly bounce back. The losers must lose. This approach does not go down well with politicians, but is the best medicine for a sick patient.