Topic updates
Global Economics - Is China's economic model broken?
17th October 2021
This new video from the Financial Times is a fantastic look at China's economic model.
It focuses on the centrality of real estate to the Chinese economy, the importance of housing policy to past and future prosperity, and the Evergrande crisis.
The brilliant George Magnus writes here about the Evergrande crisis and what this means for both the Chinese economy, and, by definition, the global economy.
There's some eye-watering stuff in the article - the size of Evergrande's debt - around $300bn - and the contribution that the sector makes to the Chinese economy - the property market is worth four times Chinese GDP, and the housing sector annually accounts for nearly one-third of economic activity.
However, the alarming thing is what a collapse of the sector could mean more generally., not least if house prices in China start falling. The real estate bubble cannot last indefinitely.
You might also like
China’s Development - Past Present and Future
25th January 2014
China at the Cutting Edge
19th September 2013
Is the Great Catch Up slowing down?
9th October 2014
After the BRICs, the GIPSIs: Tackling Europe’s Problems
10th September 2014
Russia increases policy interest rates to 8%
27th July 2014
China accepts creative destruction
22nd May 2014
Chinese FDI in Africa
15th May 2014
Paul Ormerod: Themes on Russia’s Future
3rd October 2013