China, led by President Xi Jinping, is in the midst of a bubble that is about to burst. This is China under the leadership of President Xi Jinping.
The slump in China’s real estate sector has worsened. Real estate giant China Hengda Group has run up huge debts of about 48 trillion yen due to the expansion of its business. The bursting of the real estate bubble spread to other industries, such as finance, and to all of China. Due to oversupply, high-rise condominiums and buildings have been abandoned, and ghost towns have sprung up all over the country. Along with this, bad debts have grown to enormous proportions. This has affected Japan as well, and prices of high-rise condominiums in Japan, which Chinese have been buying up for resale, have tended to fall. An international journalist explains.
The Chinese authorities stopped publishing data on the youth unemployment rate, which had exceeded 20%, in August. Some say that the youth unemployment rate is over 50% due to the lack of job opportunities for university graduates. The anger is turning to Xi Jinping. In order to eliminate such malcontents, it is feared that Xi Jinping will use quibbles and false accusations to round up some ignorant Chinese citizens and lead them into an anti-Japanese movement.
In China, the rapid aging of the population with a declining birthrate has increased the burden of nursing care costs and slowed the demand for housing. Social unrest and the difficulty of living have even led to demonstrations claiming refusal to repay home mortgages. Some economic analysts are suggesting that China is in the same recession as the Japanese economy in the 1990s.
China’s geopolitical risks are also accelerating the recession. Xi Jinping’s dictatorship has reduced the transparency of laws, and the country is not stable, with no surprises in terms of what could happen, either domestically or militarily. Foreign companies and foreign investors are shifting their operations and investments from China to Southeast Asia,” said an international journalist.
China is being abandoned by the international community. We have to consider countermeasures in case they launch an “anti-Japanese movement” out of bitterness.
(Megumi Sato)
