The fallout of China’s real-estate market weighs on the rest of the nation’s economy — and soon, the world’s. Share
Evergrande, one of China’s largest real-estate developers, filed for bankruptcy last week, the latest sign that the nation’s once high-flying real-estate market is falling apart. China’s economy is heavily influenced by its real-estate market, and China’s continued struggles will undoubtedly harm the broader world economy.
The ruling Chinese Communist Party’s (CCP) policies have always driven the boom and bust of China’s real-estate sector. The party abolished private property rights and nationalized land and home ownership after it took control of China in 1949. Before 1980, the Chinese government controlled all housing in urban areas, including construction and distribution. City dwellers received public housing allocations through their work units based on needs, seniority, and social class (for example, people classified as counter-revolutionaries wouldn’t qualify for […]
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