CNBC's The China Connection Newsletter: The 'Cliff' Beneath China's Cities

大紀元時報

Factuality

Ownership

Working for the government leads to a debt spiral. Unpaid public works contracts are rampant in China. People are using their homes as collateral for loans, dragging their friends into the mess. Demanding payment leads to crackdowns.

大纪元 Epoch Times

Factuality

Ownership

After more than two decades of rapid growth, China's real estate industry has been sluggish in recent years, plunging local governments that rely on land sales revenue into financial difficulties. Meanwhile, numerous unfinished construction projects have emerged across China in recent years, revealing staggering local government debt problems. The Chinese Communist Party has ordered the exit of the urban investment system, which has been operati…