Economist Podcasts Home groan: China’s housing-sector crisis
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Aug 22, 2023 
Don Wineland, The Economist's China business editor, discusses the turmoil in China's housing sector, highlighting the struggles of major players like Country Garden and Evergrande. He explains how these issues impact the broader economy and citizen confidence. Meanwhile, Guy Scriven, US tech editor, takes us on a ride in San Francisco's autonomous taxis, exploring the technology, safety concerns, and public opinions surrounding this innovation. Both guests also touch on the alarming decline of Antarctic sea ice and its implications for climate change.
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China's Housing Market Dependence
- China's housing market is a massive part of its economy, making up roughly 30% of its GDP.
- Limited investment options for citizens make housing a primary investment, creating vulnerability.
Country Garden's Impact
- Country Garden, once considered a stable developer, missed a coupon payment, causing widespread panic.
- This highlights the fragility of the housing market and erodes confidence in the overall Chinese economy.
Country Garden's Liabilities
- Country Garden's liabilities are largely from prepayments for homes, around 50%.
- They are currently developing over 3,000 property projects, compared to Evergrande's 700 in 2021, impacting a million homes.