In a few cities, such as coastal Wenzhou and coal-rich Ordos, the collapse in property prices has sparked a full-blown credit crisis, with reports of ruined businessmen leaping off building rooftops; some are fleeing the country. — Foreign Affairs
Prospects just few years ago looked great and China had jobs for everybody who were laid off in American market. But now the wind has changed direction. People who were speculating in Ordos and the like places are no where to be found and the bubble is about to burst.
6 Comments
I don't know where this puts the rest of the world. In recovery or out of gas when that was the last station.
the general sense on the ground here is that the *housing* bubble is undergoing a gov-assisted deflation... other markets are still going strong. growth might slow down to 7 or 8% this year... still a crazy number.
Apparently road building is the only good business to be in anymore, both in China and here.
The chinese economy is nothing more than smoke and mirrors read Gordon Chang's The coming collapse of China for the details...
Smoke and Mirrors can sustain you for quite a while when you have total control over your economy. The survival of the (Communist) "Party," depends on maintaining +5% GDP, whether it's artificial or not.
The commie goons will not survive. Ai Wei Wei will lead a new internet powered "Tiananmen" in the coming months, and China will finally join the civilized world. In the end the people have the last word not governments.
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