The Intelligence from The Economist Home groan: China’s housing-sector crisis
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Aug 22, 2023 
Don Wineland, The Economist's China business editor, delves into the deepening housing crisis in China, spotlighting the struggles of developer Country Garden and the fallout from Evergrande's collapse. He explores the economic ramifications and how ordinary citizens are impacted. Meanwhile, Guy Scriven shares his thrilling experience in a self-driving taxi in San Francisco, discussing the technology's seamless navigation and the mixed reactions to autonomous vehicles. They also touch on the worrying decline of Antarctic sea ice and its global implications.
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China's Housing Market Dependence
- China's housing market is a cornerstone of its economy, making up roughly 30% of GDP.
- The average Chinese citizen has limited investment options, making housing a primary investment vehicle.
China's Housing Crisis Overview
- China's housing market thrived for decades, driven by ever-increasing prices.
- In 2020, government intervention aimed to reduce leverage led to a downturn, impacting major firms like Evergrande.
Country Garden's Struggles
- Country Garden, once considered a stable developer, missed a coupon payment, causing widespread concern.
- Unlike Evergrande, Country Garden's liabilities heavily involve prepayments from average homebuyers.