Posted 12/27/2023, 10:00:16 PM
Chinese Developers Withhold Billions in Payments From Contractors Despite Government Pressure
- Some Chinese developers are not paying contractors for work done, despite government pressure to pay suppliers on time
- Two contractors interviewed have still not been paid for projects completed in 2019 and 2021
- Developers are offering apartments to contractors instead of payment, but selling those units now would mean big losses
- Local authorities acknowledge a severe tightening of corporate funds due to overdue payments from state enterprises
- Private sector investment capacity has declined due to reduced access to state-invested projects and overdue payments