China’s local finances are becoming increasingly strained. This is because the real estate bubble has burst and land sales, the main source of government revenue, have plummeted. In order to balance the books, the government has begun suspending public services and increasing the collection of fines, which is having an impact on people’s lives. The “alchemy” that was based on the assumption of ever-rising housing prices has disappeared, and the Xi Jinping leadership is being forced to make fundamental reforms. Wuxi, Jiangsu Province, is known as a scenic water town on the shores of Lake Taihu. Bidding for residential land facing the Grand Canal, a World Heritage site that stretches all the way to Beijing, was held in April. The winning bid was made by an investment company known as a “financing platform” under the local government, which paid the set minimum price of approximately 1 billion yuan (approximately 21.2 billion yen). However, when I visited in November, the vast space where the crowded houses had been removed had not even been leveled and was overgrown with weeds. Local residents were skeptical, saying, “If we build more, who will buy them?” In China, all urban land is publicly owned. Local governments sell land use rights, and builders build and sell houses. However, as the market began to reverse, demand for housing plummeted, and struggling developers quickly lost interest in purchasing land. (Wuxi Joint) December 1, 2024 15:22 Kyodo News.
>>2 That’s done with the intention of draining foreign currency, and politicians are involved You can’t actually take foreign currency out You have to keep it in renminbi People who worked in China said they still had money left in their courses And then things like smartphones and precious metals that can be converted into cash became popular.
This is just the beginning; China, which has few foreign exchange reserves, is collapsing as it is dragged down by Russia’s default. When dividing up territory, each country needs to think about what it wants to take.
Japanese people cannot buy land in China (the land belongs to the Communist Party), but Chinese people can buy land in Japan. There’s no way this is so unfair.
China is buying up a lot of Japanese real estate, and then renting it out to Chinese people at bargain prices, while offering Japanese people about five times the price. This is really dangerous right now.
>>38 What happens then is that the Chinese who bought them end up in financial difficulty and start selling them for next to nothing The Chinese haven’t learned anything from the collapse of the Japanese bubble They just keep exporting these bastards who are full of naked human greed.
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