Scandal in the wind: Adani’s indictment could hurt Modi
Nov 25, 2024
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Jeremy Page, Asia diplomatic editor for The Economist, and Don Wineland, China business and finance editor, dive into high-stakes political and economic issues. They discuss the repercussions of bribery charges against Gautam Adani and how it could shake Narendra Modi's government. The duo also unpacks China's empty housing crisis, highlighting the massive overbuilding and the urgent need for policy reform. Additionally, they touch on the divisive influence of Jordan Peterson and his newfound cultural significance.
The political implications of bribery charges against Gautam Adani could significantly impact Prime Minister Narendra Modi's standing in India.
China's extensive housing crisis, with millions of unsold homes, poses a severe challenge to the economy and local government revenues.
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China's Housing Crisis
China is grappling with a significant housing crisis attributed to overbuilding and massive debts incurred by developers, leading to millions of unsold homes. Current estimates indicate around 70 to 80 million empty flats across the country, creating pressure on local economies that depend on housing sales for revenue. Government interventions have included a relending facility to purchase these surplus homes and convert them into social housing, yet the actions taken have thus far yielded minimal impact. This situation raises concerns about consumer sentiment as wealth tied to housing continues to stagnate, making it increasingly challenging for the economy to rebound.
Jordan Peterson's Cultural Impact
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Gautam Adani is one of India’s richest men, whose fortunes are closely aligned to those of Prime Minister Narendra Modi. What will the political ramifications be of bribery charges against him? China’s property crisis has left a truly staggering number of new homes empty (9:01). And why Jordan Peterson is so contrarian, yet so popular (17:09).