China's economy is slowing down
China's economy is slowing down
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China faces slow growth, record levels of youth
unemployment, low foreign investment, weak exports and currency, and a crisis
in the real estate sector. At the heart of China's economic problems is its
real estate market. Until recently, real estate was the backbone of the Chinese
economy as it accounted for a third of the country's total wealth, says Professor
Antonio Fatas, an economist at INSEAD Business School in Singapore., 'It is
absolutely meaningless, which makes no sense.' But the time of 2020 when the
Corona epidemic affected the whole world and the real estate industry started
shrinking in China too, this sector may not have recovered
till now.
US-style economic
The Chinese government, fearing a US-style economic crisis
in 2008, set a cap on how much debt developers could borrow. Soon they were
saddled with
billions of debts that they were unable to clear. Demand for housing fell
sharply and property prices also suffered a decline.
Wealth Management Firm Natixis
According to Alicia García-Herrero, chief Asia economist at
wealth management firm Natixis, "In China, property is the best source
of savings for you," he says. Four is better practice than putting it in
the stock market or a low-interest bank account. This means that, unlike Western countries, there is no
post-pandemic spending boom or any major economic crisis. García Herrero Said 'It
was thought that the Chinese people will go far in the use or spending of their
money after the coronavirus epidemic.
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Country's Economical Situation
According to him, he will travel the world, he will go to
Paris, and even see the Eiffel Tower, but in fact, he knew that the country's
economy and the increase in the prices of goods there could prove to be a
burden on him, so he They have decided
to save the cash they have for the tough times ahead. According to some
economists, it will take years to recover from the current situation and
conditions of the property.
Glimpse Of Trouble
A glimpse of the problems with China's economic initiatives
and the way it operates is also evident in the property sector. Over the past
30 years, the country
has grown astonishingly and managed the economy, roads, and everything from
connecting bridges and railway lines to factories, airports, and houses has
seen this factor. However, some economists argue that this approach is being
seen both figuratively and literally.
Chinese Construction Companies
Another strange example of Chinese construction can be found in Yunnan province near the Myanmar border. The authorities have surprisingly confirmed that they are going to build a quarantine center with the help of millions of dollars where a large number of corona patients can be kept if needed. We can see a glimpse of this in the form of youth unemployment in large numbers. Across China, millions of well-educated graduates are scrambling to find white-collar jobs in urban areas.
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Jobseeker Rate
In July, the data showed that the jobseeker rate among 16-
to 25-year-olds was 21.3 percent. However, the authorities have since announced
that they will stop publishing the figures. According to Professor Fatas, 'this
shows the rigidity in the central economic system which has led to large
numbers of Despite the presence of youth, they have not been able to be made a
part of the system or are facing difficulties in this process.
