Planet Money China's real estate crisis, explained
69 snips
Nov 15, 2023 In this insightful discussion, Emily Feng, an NPR international correspondent with a focus on China, delves into the severe real estate crisis facing the nation. She explains how China's once-mighty real estate market, an engine of economic growth, has come to a standstill, raising concerns for global markets. Feng also highlights the challenges faced by developers, including growing debt and regulatory shifts. The conversation vividly illustrates the systemic risks and ethical dilemmas bred in the competitive landscape of China's property sector.
AI Snips
Chapters
Books
Transcript
Episode notes
China's Land Reform
- Until the 1980s, private property didn't exist in China, with everything owned collectively.
- Local governments gained power to zone land and sell 70-year leases, becoming reliant on these sales for revenue.
Desmond Shum's Logistics Hub
- Developer Desmond Shum and his wife Whitney leveraged political ties for deals, even building a logistics hub with little industry knowledge.
- Shum describes casual bribery as commonplace, with gifts like watches and expensive dinners for officials.
Gifts vs. Bribes
- Desmond Shum discussed giving $10,000-$20,000 watches as "trivials of respect", not bribes, in the context of the business culture.
- He claims these gifts didn't obligate recipients but reflected the norms of their affluent circle.
