Xi's Policies Fueled China's Property Crisis, Weighing Down Growth
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Beijing's policies caused China's current property crisis by overhyping housing development. Local governments encouraged it for revenues.
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President Xi capped lending to developers in 2020, causing failures like Evergrande's. This generated financial and economic fallout.
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Banks narrowly avoided collapse as developers defaulted. But losing a huge sector still weighed down growth momentum.
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Property investment and sales have plunged. Falling prices have made households poorer, further hurting consumer spending.
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Though Beijing now supports developers more, the damage is done from overextending support, abruptly removing it, and responding slowly initially.