Why China is left with 5 Crore Empty Houses in Ghost cities?

Has China been caught in its own Debt Trap?


Reference -
https://www.bloomberg.com/news/articles/2018-11-08/a-fifth-of-china-s-homes-are-empty-that-s-50-million-apartments
https://www.cnn.com/2018/11/09/economy/china-economy-risks/index.html
https://www.focus-economics.com/blog/the-largest-economies-in-the-world
https://en.wikipedia.org/wiki/Belt_and_Road_Initiative
https://en.wikipedia.org/wiki/Economy_of_China



Transcript - 


Hello Friends, welcome to Real Quick Info channel. Lets discuss our Original Real Quick Analysis.



Over last couple of years, The impression has been successfully created, that China is very clever country.



In fact, daily we read many comments from our viewers, that China is very smart. it has 3000 billion dollars in foreign currency reserves. It can easily throw few billion dollars here and there.



As per economic forecast, In next two years, China will remain second largest economy in the world with size of economy growing from 14200 Billion Dollars to 15600 Billion Dollars.



There is no doubt about the economic might of china.



you might have read so much about how china has grown rapidly in last 30 years. but you might have never been told how much debt on China has grown over the same period of time.



China cleverly over projects its economic growth numbers and suppress its debt level.



If you look at Chinese economy on Wikipedia, you would see that China has 1420 Billion dollar   gross external debt.



With the economy of 12200 Billion Dollars, having debt of 1420 Billion Dollars can be regarded as very healthy sign of Chinese economy.



Recently we came across the data from World bank, size of Chinese economy has grown from 4600 Billion Dollars in the year 2008 to 12200 Billion dollars in the year 2017.



But in the same period, Chinese total debt level has gone up from 6600 Billion Dollar in the year 2008 to 32400 Billion Dollars in the year 2017.



In 10 years period, Chinese economy has achieved growth of 165%. But in the same period Chinese total debt has grown by close to 400%.



Now its up to your smartness, how much smart you consider China.



Though Chinese total debt level is subject to debate, its open secret that Chinese growth story has been led by rising debt level.





So much debt has gone into building bridges, road and other infrastructure. which have positively contributed to Chinese economic growth.



Last year, China got worried about this mountain of debt. Mainly thanks to the efforts of controlling rising debt level, over heated Chinese economy is slowing now.



When China itself carrying debt of 32400  billion Dollars, its no wonder that its putting 8000 Billion Dollars to create multiple small mountains of debt under Belt and Road initiative.



in Simple words, if you have to build infrastructure by taking loan in your own overheated expensive country, why not use the same loan to build infrastructure in under developed and poor countries.



This model of taking loan and building infrastructure has been working very well, because world has let China to exploit current global trading system.



Love for cheap goods have made whole wold economically blind.



Its not that China has built infrastructural white elephants in other countries alone. In fact, as per the extensive survey done in China, right now as many as 5 Crore apartment are lying vacant in China.



When China has already built  ghost cities having 5 Crore vacant homes, its now building ghost cities world wide.



Unfortunately, no environmental expert has guts to ask, why China has wasted so much resources of our dear earth to build the houses, which no one needs at the cost they are sold.



Hopefully, Chinese day of reckoning will come sooner or later. China can delay the day, but it cannot make that day never come.



the bottom line is simple, China was not Smart, it was the world, which has been fool.



While Chinese debt level has gone up by 400%, what these globally reputed rating agencies have been doing? Perhaps they are waiting for another global economic crisis to wake up.



Rather than reining its own debt level, China is now growing total debt of the world by throwing money in other poor countries.





China can become a global number one economy by creating bad assets, but China can never remain as number one global economy for longer period of time, if its foundation laid with assets making no money.



If you don't create good quality assets, sooner or later the power of basic economics will defeat you.



It has defeated America in the year 2008, it will defeat China one day. The good thing is, no one knows, when it will happen.




In fact, many global experts have predicted in the past about coming collapse of China. But China some how managed to delay it. Then Global economics experts have simply discredited those experts, who predicted the Chinese decline.



We are not economic experts and we are not in the business of economic forecasting. We have common sense and we know, no one can defy basic economics forever.



You see, while we say China is very clever. China says, in reality you are so fool, that you consider us clever.



As per your analysis, Will china keep taking loans and keep growing forever?

 Please let us know your views in comment section below.



Please find the reference links of this video in the description box below. Thank you friends for watching this video.

Tags
ghost cities,ghost city,ghost town,cpec latest news,cpec latest news 2018,cpec documentary,coming collapse of china,china collapse 2018,indian foreign affairs news,indian defense update,indian defense news latest,indian defence news,china pakistan economic corridor,bri latest news,5 Crore empty houses in China,Housing bubble in CHina,china housing bubble 2018,china debt trap,china debt crisis,modi latest news,modi speech today,total debt on china