New York Times (August 25)
The Chinese “housing downturn has not delivered the devastating shock that the United States suffered in the 2008 financial crisis, but it has been hanging over the economy for five years with no end in sight.” Prices for new and secondhand homes continue to fall. “The continuing property market slide comes at a vulnerable moment for the Chinese economy. A trade war has limited China’s ability to rev up its export engine, while consumer spending remains soft. The government is plowing money into semiconductors, robotics and other technologies, but those investments are unlikely to pay off quickly enough to fill the hole left by a shrinking property sector.”
Tags: 2008 financial crisis, China, Consumer spending, Devastating, Downturn, Economy, Export engine, Home prices, Housing, Property market, Semiconductors, Trade war, U.S., Vulnerable
