Cross-posted from: https://beehaw.org/post/10753302
The Chinese Communist party’s prickly attitude to criticism is not uncommon. The reality, though, is that systemic problems have over the years become features in China’s $19 trillion economy. The real estate market has tipped over after an almost unbroken 20-year boom, which the government itself encouraged. At about a quarter of GDP, housing now faces years of shrinkage as it adjusts to chronic oversupply and lower household formation. Property developers, local governments and state enterprises have high levels of debt and many face debt service difficulties. The virtual absence of inflation reflects inadequate aggregate demand.
Stalled productivity growth, the politicisation of regulation and the business environment, rapid ageing, high youth unemployment and inequality also figure prominently.
Offhand, I find it kind of funny that low housing costs and low inflation are bad things when they happen in China, but high housing costs and high inflation are the fall of western civilization when they happen here.
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While i haven’t been paying much attention to it, from my understanding the reported ghost towns were places where there was only half or so of completed residential units occupied, and which some less than scrupulous reporters then exaggerated to being near entirely empty.