China manages property markets to stop speculation

Scott Bessent is still flogging a dead horse, proclaiming that China cannot survive without the USA and China could collapse without going to kiss Trump's arse. Did China collapsed after the fall of Evergrande and the Chinese property market as a whole, mirroring the collapse of the USA housing market in 2008 that needed a massive bailout by the USA Government?

I want to talk further about China's property market collapse because I did read a report about foreign investors waiting on the sidelines for a bailout by the Chinese Government after their buying in right after the property market collapsed, hoping to cash in. It was not to happen, and they were burnt badly by the Chinese Government's refusal to bail out property developers. Instead, the Chinese Government was prepared to let property developers bite the dust. Nothing is too big to fail in the eyes of the Chinese Government. The Chinese Government was then navigating into supporting the other growth sectors like EVs, chips, aviation and shipbuilding sectors, on top of encouraging domestic spending with all the subsidies and funding trotted out.

Help was never going into the property sector, and any bailout for that sector would encourage more speculation. As Xi told the people, homes are for living in, not for speculative purposes. The Chinese have learnt valuable lessons from Japan and the USA. Investors from USA and the West were burnt so badly, they are livid and hated the CCP.

There has been so much talk about funds moving out of China, together with Western companies moving investments out of China after the collapse of the property sector in China. That has now basically been reversed by Trump with his tariff war. Foreign investors know they cannot do without the Chinese market, even with the property market now a hot potato for them to hold on to.


Anonymous