Valin Posted August 31, 2022 Share Posted August 31, 2022 The Hill Diane Francis, Opinion Contributor 08/29/22 Russia’s terrible war generates headlines, but China’s growing debt crisis is mostly ignored. And yet, it will have profound negative effects on the global economy. In just three generations, Beijing built a middle class bigger than America’s entire population. But now Chinese many face ruination. China’s domestic real estate bubble, due to deregulation, is so gargantuan that much of its middle class has been damaged. “China’s debt bomb looks ready to explode and many warning signs suggest that a debt reckoning is imminent,” warns Nikkei Asia. A massive mortgage revolt is underway, and as banks fail, protests grow. Today, 50 million empty or unfinished units bought on “spec” in hundreds of urban areas may never be completed or paid for, equivalent to one-third of all housing units in the United States. Besides that, Beijing itself is owed $1 trillion by struggling governments around the world that cannot afford to pay back loans for Belt and Road Initiative projects. The result of this domestic and foreign borrowing is that this year China’s debt is expected to reach the equivalent of 275 percent of its GDP due to massive borrowing and economic slowdown. The United States, by comparison, is expected this year to reach a debt level of 98 percent of its GDP. The result of the property bubble is unusual defiance by Chinese people toward their authoritarian government.....(Snip) ____________________________________________________________ H/T Aug 31, 2022 China's economy is not doing well, in large part because companies over-leveraged themselves. Instead of getting back on a sound financial footing, focusing more on actual revenue and less on borrowing though, China is using more loans to duct tape the economy together. In this episode of China Uncensored, we look at how China is sinking deeper into debt to save its economy, how it got so bad in the first place, and why stopping China's zero covid policy would greatly help, but won't happen any time soon. Aug 29, 2022 Growing pains in China as it logs more disappointing economic data. Will the country’s economic growth model run out of steam? Link to comment Share on other sites More sharing options...
Valin Posted September 1, 2022 Author Share Posted September 1, 2022 Sept. 1 2022 Chinese officials will lock down the city of Chengdu on Thursday in an effort to curb the spread of COVID-19, confining millions to their homes and closing business in one of China’s largest and most economically important cities as Beijing pushes ahead in its solitary and dogged pursuit of “zero Covid.” Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now