China's Economic Transition and Real Estate Market

China is undergoing an economic transition, shifting from a low-skilled heavy industry to a high-tech industry economy. This transition has reduced the importance of the property sector, which previously accounted for 25% of GDP. As a result, the government has implemented measures to squeeze the property market, such as cutting off credit and imposing restrictions on home buyers. While the transition is causing disruptions and pain, there is no financial crisis in China. The government's long-term goal is to shift investment to high-tech sectors to address declining workforce and boost productivity.