China’s ‘miracle’ economy is being choked by authoritarian Chairman Xi Jinping

Early in September, an obscure Chinese essayist hit the big league. His article was splashed across state-controlled social media. It even featured in the Communist Party’s premier publication – the Peoples Daily newspaper.He declared the nation’s financial markets would “no longer be a paradise for capitalists to get rich overnight”. He called on the PolitBuro’s to move swiftly on reigning in high housing and health care costs.

But hundreds of smaller real estate developers have already gone bust so far this year. Many builders, contractors and suppliers are in distress.Instead, the message is unanimous: Beijing is in control. “In recent weeks, multiple city governments have stepped in to stop developers from discounting their properties too much in fire sales, lest they send the entire market into a death spiral,” says McGregor.The Communist Party’s central Politburo decided to burst the nation’s overinflated property bubble last year. It initiated a “three red lines” policy – imposing hard limits on debt-to-asset ratios, debt-to-equity ratios, and cash-to-short-term-debt ratios.

Yup. To much to soon all because of a promise in the last Leadership meeting 20 odd years ago

Wholesome? Really?

Or maybe the world has had enough of labor exploitation, global pollution from unregulated manufacturing, violation of international agreements, etc etc 🙄🤔

he remembered that he's a communist and that he should be destroying the economy, not allowing it to thrive

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Evergrande's woes may not trigger the next global crisis. But they're still very bad for AustraliaAs speculation over Evergrande's future continues, there's a growing belief among analysts that the world's second-biggest economy is heading for a slow wind-down that will be painful but predictable. interesting that given the amount of control in China they can control the price of electricity but not the price of local coal So all that happens to us is that we are less rich. Think of the poor families in China who may lose everything they’ve worked for. All those long long hours of work for nothing. That’s the real story here.
Source: abcnews - 🏆 5. / 83 Read more »