There really may be no helping the China economy. A few years ago westerners touted the Chinese as the way to go and the example of world economic success. Today the country’s economy is falling apart in large part due to its dependence on the real estate sector.
We warned since President Trump was in office that his actions were causing the Chinese economy to fall apart. In 2020 right before COVID hit, Trump had clearly won the economic battle with China in a knockout.
Then came COVID and still Trump’s economy bounced right back in the greatest economic rebound in world history. The market rebound after the summer in the US holds records that might never be beaten. But for China, it was a different story.
We started seeing over the past few years that China’s housing and construction markets were falling apart. Evergrande, the world’s largest debtor went under and the entire market was suddenly in the light.
China’s property sector is getting worse. Today it’s reported that individuals in China have stopped making payments on their mortgages because their properties being built have been stalled. People in China are saying to themselves – why should I give money to a bank or property company when they are going under and unable to build my condo?
Chinese authorities held emergency meetings with banks after growing alarmed that an increasing number of homebuyers across the country are refusing to pay mortgages on stalled projects, according to people familiar with the matter.
The Ministry of Housing and Urban-Rural Development met with financial regulators and major Chinese banks this week to discuss the mortgage boycotts on concern that more buyers may follow suit, said the people, asking not to be identified discussing a private matter.
While there was no immediate solution, regulators asked local watchdogs and banks to report the impact, including property projects affected in their jurisdictions, as soon as possible, the people said. Some banks plan to tighten their mortgage lending requirements in high-risk cities, two of the people said.
Remember 25% of China’s economy is the property sector and it’s falling apart. Without Biden doing everything he can to help China they might implode. The Biden regime is keeping the China economy afloat while killing the US economy.
Whose side is Biden on?
Hat tip Canncon
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