![]() And then, yeah, within China, especially for private companies, accessing bank finance or something like that, you know, it was very difficult. Don Weinland is the China business and finance editor for The Economist newspaper.ĭON WEINLAND: The idea of a Chinese company going overseas to get funding from capital markets - pretty much nonexistent. WONG: And so China needed to build, but property developers faced a huge hurdle. Millions of people were moving every year into cities, and each person had on average just over 76 square feet to themselves - so, like, the size of a bed and not really much else. And as the economy opened up from central planning, more people came from rural areas into cities to work in factories. WOODS: And to fully understand this mess, you kind of have to go back to the start of the 1990s, when only about a quarter of the population lived in cities. Forty percent of homes bought over the last several years remain incomplete. New sales of homes have plummeted, and developers are going bankrupt. WONG: And I'm guessing top of mind for him is the catastrophic loss of confidence in real estate developers. ![]() WOODS: And in his speech announcing his reappointment, Xi Jinping spoke of new challenges and tests. PRESIDENT XI JINPING: (Non-English language spoken). At the same time, the Chinese stock market took a dive. Third-quarter GDP numbers were finally released, and we had economic output growing at a healthy 3.9% from a year earlier. WOODS: As President Xi Jinping was reappointed last month, there was mixed economic news coming out of China. We'll break down why these chips matter, what the bans entail, how we got here and what this means for China, the U.S. bans advanced semiconductor chips for China. WOODS: And after that, a tectonic shift as the U.S. We'll look at a potted history of real estate in China and how this economic bomb is detonating. WONG: First up, the biggest asset class in the world is Chinese property, and it's in trouble. This is all about two changes that are happening at the heart of China's economy. Today on the show, we have two recent episodes of PLANET MONEY's daily podcast, The Indicator. (SOUNDBITE OF GEORGE GEORGIA'S "8 BAR CYPHER") Xi was just reappointed, and China is in a real estate crisis. ![]() WOODS: And Xin's problem may soon become President Xi Jinping's problem. LEE XIN: (Through interpreter) I'll never have the ability to buy an apartment again. And at the same time, they're watching house prices in China skyrocket. But while they're waiting for the apartment, they've put off having kids. He now has a good job at marketing in the big city in Xian, but an apartment can really seal the deal. You know, like Xin grew up poor in the countryside. Having your own apartment in China is kind of crucial for young men like Xin, who want to be attractive marriage prospects. ![]() WONG: But his apartment is still only half finished, so he's paying his mortgage and rent to live somewhere else. LEE XIN: (Through interpreter) When I bought this house, I looked with pride at what I'd accomplished. Lee Xin (ph) bought his apartment nine years ago. SYLVIE DOUGLIS, BYLINE: This is PLANET MONEY from NPR. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |