4 days ago
New York Magazine
So one way of looking at it is that households retain about three times the income share that governments do. Xi’s government is also quite aware of the problems in China’s property sector. Whether you’re a business or a household or a bank, you learn to bet on continued expansion in the property sector. So eventually, after so many years, much of the economy is implicitly betting on continued expansion in the property sector. And that means everybody — households, banks, businesses, local governments — suffer enormously from any attempt to bring the property sector under control.
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