February 28, 2024

Taylor Daily Press

Complete News World

The Chinese economy is close to collapse

The Chinese economy is close to collapse

In summary. A Hong Kong court has ordered the liquidation of Chinese real estate company Evergrande, which has debts of $300 billion. This raises questions about the consequences for China and the global economy.

Why is this important?

Evergrande's demise is a symptom of China's worsening financial crisis that has been going on for years. The collapse of the real estate market and construction sector has eroded economic confidence in China, leading to unemployment and challenges for local governments. This also affects the global market, as China's dependence on exports becomes clear in light of the cold global economy.

In the news. Evergrande will not lead to a financial crisis in China, but rather is the result of an already existing financial crisis.

  • Up to 30% of the Chinese economy was dependent on the inflating real estate bubble, with negative consequences for both formal banking and the shadow system.
  • The crisis has led to foreign investors' more realistic view of risks in China. Many have already taken their money. All this confirms the dependence v