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These are things that can lead to stagnation, not really collapse. Even in the worst case of real estate bubble pop + massive unwind. Real estate loans and owne
by ivalm 3y ago
These are things that can lead to stagnation, not really collapse. Even in the worst case of real estate bubble pop + massive unwind. Real estate loans and ownership are almost entirely domestic, and ccp has a lot of power to reshuffle however is advantageous to them.
- nonethewiser 3y agoReal estate is largely what funds local governments. Collapse is possible.
- peterfirefly 3y agoChina is not good at normal taxation. Local governments mostly get their money from property "sales" (long-term leases) and loans (mostly off-books these days). China has tried to enact property taxes but the push back was so big the government backed off. It is gonna be real rough soon.
- seanmcdirmid 3y agoChina has an income tax and VAT, but the central government takes most of that, leaving most local governments incredibly underfunded. Property taxes could solve that, land transfer taxes can only be collected when property is built (and so they build).
- peterfirefly 3y ago> China has an income tax and VAT, Both are fairly low.