The Scary Solution to the Chinese Debt Crisis #Shorts | Economics Explained

The CCP is trying to make property investment less attractive to help make housing more affordable. What do you think? Leave a comment down below. 💬 ⬇️

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[EconomicsExplained]

The CCP is trying to make property investment less attractive to help make housing more affordable. What do you think? 🤔Leave a comment down below. 💬 ⬇️

[________________________]

Crazy how housing is unaffordable but there is also a glut of unoccupied houses. The CCP definitely has a knack for painting itself into some weird corners.

[NB-gcsq]

The main problem was the government thought people would move to where they built houses. They forgot that the people were moving for jobs, and there were no jobs where they built houses.

[laughingwarlock]

Ironically there's ghost villages of houses constructed in remote parts of China that nobody lives in. A bi-broduct of excess labor that you've covered in other videos.

[songyani]

I'd like to point out properties for living purpose has a ownership time limit of 70 years not 100，but supposedly it can be “automatically renewed”，but of fourse since our government hasn't even been around for more than 80 years，private ownership hasn't been around for 50 years，this still require a few decades to verify. And if memory serves me right，commercial properties has an ownership time less than half of that of the private ones.

[donaldlee]

China’s high housing price is driven by the fact that most of China’s local governments depends on land sale to cover their excessive spendings (eg. mass infrastructure, huge government employees, and of course unimaginable level of corruption), this gives local governments a intrinsic motivation to further increase land price, resulting in higher housing price and less money to be invested into other industries. Less investment in other industries means less tax income for the governments resulting in even higher land price.

[Kunbeeb]

Problem is, chinese culture dictates in the most simple and short way I can put it - requires that all men of marrying age, to be possibly looked favourably upon by any potential wife's parents, needs their own land and property.

The more you own, the better your prospects and image will be.

[badmanskill]

None of us actually "own" land. We are just renting it from the government. That is why we pay property taxes, for the use of "our" land.

[ihaveaname]

Speaking of land. Could you possibly do a video on the economics of roads? Or maybe the economics of urban sprawl? How can a nation maintain it's transportation infrastructure while still keeping a balanced budget. Are trains the solution? Is this even a problem?

[matthewmatthew]

Can confirm that Chinese ppl (esp. Older generations) are freaking obsessed with properties, the ease with which my parents and their peers automatically default to Real Estate as an investment over everything else is scary. Despite the differing risk/return ratio for RE overseas vs locally.

Source: Am Chinese

[jakosloth]

Damascus:*is 67.8 times the average household income*
Me a Syrian: Yeah that seems right...

[kangarool]

Wait. Wait! WAIT!!

I WANT 20 MINUTES OF THIS!

[WilliamDye-willdye]

"The most unaffordable U.S. city is New York." Why doesn't San Mateo, shown on the same chart, qualify as a U.S. city?

[AnthonyCastrio]

Now we all want to know what's going on in Damascus.

[hotchi]

1990. The Economist. China's economy has come to a halt.
1996. The Economist. China's economy will face a hard landing
1998. The Economist: China's economy entering a dangerous period of sluggish growth.
1999. Bank of Canada: Likelihood of a hard landing for the Chinese economy.
2000. Chicago Tribune: China currency move nails hard landing risk coffin.
2001. Wilbanks, Smith & Thomas: A hard landing in China.
2002. Westchester University: China Anxiously Seeks a Soft Economic Landing
2003. KWR International: How to find a soft landing if China..
2004. The Economist: The great fall of China?
2005. Nouriel Roubini: The Risk of a Hard Landing in China
2006. International Economy: Can China Achieve a Soft Landing?
2007. TIME: Is China's Economy Overheating? Can China avoid a hard landing?
2008. Forbes: Hard Landing In China?
2009. Fortune: China's hard landing. China must find a way to recover.
2010: Nouriel Roubini: Hard landing coming in China.
2011: Business Insider: A Chinese Hard Landing May Be Closer Than You Think
2012: American Interest: Dismal Economic News from China: A Hard Landing
2013: Zero Hedge: A Hard Landing In China
2014. CNBC: A hard landing in China.
2015. Forbes: Congratulations, You Got Yourself A Chinese Hard Landing ….
2016. The Economist: Hard landing looms for China
2017. National Interest: Is China's Economy Going To Crash?
...
2021. Economics Explained: The Scary Solution to the Chinese Debt Crisis

[ry]

Anyone actually think that you own the land?
The land in every country on earth is the state's land.
If you have the illusion that you own the land, probably because your government is stable.
If there is a change of government, good luck telling them you own the land.

[quirrow]

There's something I need to add here though. One is that Shenzhen in your example is home to some of the largest tech giants which pays higher than average salaries, while I believe the data for income is probably derived from average income. The fact that delivery riders or migrant workers cannot afford a Shenzhen apartment does not mean the tech worker working for Tencent cannot do so, because the tech worker in Tencent probably earns the equivalent amount to what a tech employee in Silicon Valley earns. Second is that Shenzhen is one of the cities encompassing the greater Pearl River delta area, which is all connected by high speed rail. Most cities are about 40-60 minutes from each other, so there are alternatives, especially when you consider many Americans can easily spend the same time commuting from their suburban homes to their workplace.

[SenorGato]

Funny thing, housing prices in my area of the USA are skyrocketing because mysterious investors of unknown origins who just happen to have Cantonese names are buying up houses left and right, at $50-100k over asking, sight unseen.

[heywoodjablome]

You don't actually own land anywhere but rent it from the government. Don't believe me stop paying taxes.

[tobylangdale]

You don't actually "own" real property in the U.S. either, ( A fact that most Americans are ignorant of) you hold title to it, and if you don't pay the property taxes on it? It will be taken away from you.
No social credit system in the U.S.? What about your credit score and background check?
Not so different after all huh?