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Evergrande: China property giant and its founder accused of $78bn fraud (www.bbc.com)

submitted 7 months ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 7 months ago (1 children)

I've read that they're trying to lessen the share of the GDP but an uncontrolled crash would still be horrible. Hopefully whatever they do that is avoided.

[–] [email protected] 3 points 7 months ago

It is more than that. China significantly invested in infrastructure for a generation, which was generally good. However, China has hit a point where infrastructure investment won't produce the returns it used to or any at all. China also needs to figure out a way to find municipal governments, which it hasn't before. China also has to deal with a significant drop in economic growth, something it hasn't dealt with for a generation.

These are novel problems for the Chinese government.