August 14, 2023, 2:07 pm EDT
China’s Bubbles Bursting
China’s bubbles in the housing market are ready to burst on a full scale. It has been about two years after our initial mention in 09/14/2021 The Collapse of China Evergrande Group that the big problem is about to manifest.
The crash of the housing market in China appeared in Country Garden as reported by Reuter and many other media. Following the fall of its currency RMB or CNY as shown, it appeared much bigger problem is ready to surface in China financial market.
Although the US has been conducting de-risk actions in the semiconductor, AI, quantum area with China, the link between China with the US and the rest of the world cannot be cut in a short period of time. Thus, the ripple effect of the China version of ‘Lehman Brothers’ drama could be on the global stage.
Of course, the consequence may not be limited in the economic aspect. Recently, military tensions between China and other neighboring countries (Japan, Korea, Philippine, Taiwan, Vietnam, India) are rising simultaneously. Furthermore, US, Australian, and European countries are indirectly involved with the fall of China.
After the Russia-Ukraine war, China became another wildcard that could trigger negative impact to the global economy that we pay attention to its development.
