Comment on China vows to stay 'safe and promising land' for foreign investment
stink@lemmygrad.ml 6 days agoReal estate is not seen as an investment in China like it is in the west.
I remember being taught in the first grade that Food, Water, and Shelter were all necessities for survival. Needs, like housing, being seen as speculative assets is why the EU and USA are having their current housing crisis.
BrikoX@lemmy.zip 6 days ago
That is not really the case. China used the real estate market to boost GDP grow on paper (it did have real grow it was just highly inflated) by forcing local governments to borrow unrealistic amounts of money via special bonds and now the whole market is stagnant as they can no longer keep up with that debt.
And Chinease citizens did see it as worthy investment, but after the crash they got burned and now are not investing at all which just deepens the issue.