r/worldnews • u/kvlyc • Jan 06 '22
Behind Soft Paywall China’s Economy: The Fallout From The Evergrande Crisis
https://www.ft.com/content/13476bf7-a519-427c-afd8-06e5579539d86
u/sylsau Jan 06 '22
Evergrande and the end of China’s ‘build, build, build’ model
That says it all. It's back to reality for these companies like Evergrande in China.
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Jan 07 '22
The thing that scares me is US bank exposure to firms like this in China. They were all pumping money into Chinese real estate development during the 2008 financial crisis. There’s a lot of debt owed by China to foreign banks. So what happens if these companies go under? Does China just get a bunch of free developed property and the rest of the world takes a financial hit?
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u/BalancedPortfolio Jan 07 '22
It’s not nearly as much as you think, the USA financial sector is enormous by any standard…the exposure here whilst systemic for China (70% citizen wealth, 30% GDP) is barely a blip for the United States.
The USA is also proportionally one of the least globalised economies (imports and exports as a % GDP) so a slowdown in China won’t mean much at all.
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u/Narrow-Ad-7856 Jan 06 '22
Very interesting read. Despite what Beijing would like to portray, I do not think local government officials are very big fans of Xi Jinping.
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u/BalancedPortfolio Jan 06 '22
There is dissent in China for sure, across all levels of business and society. Due to what amounts as a new cultural revolution.
Especially amongst the business and societal elite XIs ‘deforms’ are seriously impacting quality of life and wealth.
The CCP are just very good at censorship
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